Becoming a First-Time Landlord

A practical guide for homeowners considering their first buy-to-let, updated for the Renters' Rights Act and the 2027 tax changes.

In this guide

What the Renters' Rights Act means for a new landlord
What buy-to-let lenders look for in 2027
A fictional, illustrative case study

Is buy-to-let still worth it in 2027?

Letting a property remains one of the most accessible ways to build a second income and long-term capital growth, but the rules have changed. Tenancy reform, firmer energy standards and higher tax on rental profits mean the landlords who do well in 2027 are the ones who plan properly before they buy.

Demand for good rental homes remains strong and lenders still compete for well-presented buy-to-let cases. What has gone is the room for guesswork: buy-to-let now rewards landlords who treat it as a business from day one.

1 May 2026Renters' Rights Act tenancy reforms in force in England

14 Nov 2027Deadline for landlords to register on the new PRS Database

1 Oct 2030Rented homes must reach EPC C or hold a valid exemption

Five steps to get started properly

Set clear objectives. Decide whether you want monthly income, long-term growth or both, and which tenant and property suit that goal: a professional let, a family home or a shared house.
Research the local market. Rents, demand and price growth vary street by street. Speak to local letting agents before you speak to a lender.
Budget for more than the deposit. Allow for the 5% stamp duty surcharge, legal and survey fees, any works, licensing, and a reserve for repairs and empty periods. Many landlords keep at least three months' rent in reserve.
Arrange finance early. Buy-to-let lending is assessed mainly on the rent the property will achieve. An agreement in principle before you offer avoids surprises.
Choose your ownership structure. Owning in your own name or through a limited company changes your tax position significantly. Take advice before you buy.

The Rules You Can'T Ignore In 2027

Renters' Rights Act. Since 1 May 2026, section 21 "no-fault" evictions have ended in England and new tenancies are periodic from day one. Rent can be increased only once a year using the statutory process, and tenants can challenge increases at the First-tier Tribunal.

PRS Database. The new landlord and property register opens regionally from December 2026. Every landlord letting in England must be registered by 14 November 2027, and a landlord ombudsman is expected to follow in 2028.

Energy standards. The Government has confirmed that privately rented homes must reach EPC C, or register an exemption, by 1 October 2030, with a spending cap of £10,000 per property.

What lenders look for

Most lenders want the expected rent to cover between 125% and 145% of the mortgage payment, calculated at a stressed interest rate rather than your pay rate, so the numbers need headroom. Expect to need a deposit of 25% or more, a good credit history and, increasingly, evidence that you understand your obligations as a landlord. Some lenders also want first-time landlords to own their own home.

Personal name or limited company?

From April 2027, rental profits held personally are taxed at new property income rates of 22%, 42% and 47% in England, Wales and Northern Ireland, two points above standard income tax rates. Mortgage interest relief for individuals remains a tax credit, rising to 22%. Companies pay corporation tax instead and can deduct finance costs in full, which is why more new landlords buy through a company. Company mortgages can cost slightly more and extracting profits brings its own tax, so the right answer depends on your wider position.

Illustrative example · not a real client

First home, first tenant: a fictional case study

Priya, 35, owns her flat in Leeds and wanted a second income alongside her job. Her broker helped her budget for the 5% stamp duty surcharge on a £195,000 two-bed terrace, arrange a 75% loan-to-value buy-to-let mortgage on a five-year fixed rate, and set aside £4,000 for insulation and a heating upgrade to secure an EPC C before letting. She registered on the PRS Database as soon as her region opened, so her first periodic tenancy started without delay.

Names, figures and circumstances are fictional and illustrative only. They do not represent an actual client of Our Mortgage Broker Limited.

Three things to check before you offer

Get an agreement in principle first. It confirms what you can borrow and strengthens your offer.
Check licensing before you fall for a property. Selective and additional licensing schemes are expanding, and requirements can change from one street to the next.
Build the EPC cost into your offer. If a property needs work to reach EPC C, reflect that in the price you pay, not just in your budget after purchase.

Thinking about your first buy-to-let?

Speak to a CeMAP-qualified OMB adviser: whole-of-market advice, with any fee confirmed in writing before you proceed. Read more about buy-to-let mortgages.

Start your enquiry 0203 971 1234

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Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority. Our Mortgage Broker Limited is authorised and regulated by the Financial Conduct Authority (FRN 944663). Registered in England and Wales, company no. 11358646. Registered office: 23 Berkeley Square, Mayfair, London W1J 6HE. There may be a fee for mortgage advice: we may charge up to 1% of the loan amount, and our typical fee is £500. Your fee agreement sets out the exact fee and when it is payable (at decision in principle, application or mortgage offer); fees are not refundable once due. We usually also receive commission from the lender. This guide is general information only and is not personal advice. Case studies are fictional, illustrative examples and do not represent real clients. Rates, tax and regulatory information are correct as at October 2026 and may change, including at the Autumn Budget on 28 October 2026.