By Wondering why Buy to Let is still worth investing in? We look at BTL’s strong performance and positive future projections to show you why it remains a top choice for investors.
As landlords and investors adapt to the most significant market changes in three decades, the evidence remains stronger than ever that buy to let is still worth it in 2026 for those seeking long-term growth.
2025 Property Market Recap
As we enter the final month of 2025, now is a great time to take a look back at the UK property market’s overall performance throughout the year to spot trends or red flags that could shape the way investors view the market in the coming year.
First up, let’s take a look at UK house prices.
The latest House Price Index from Zoopla shows that the average UK house price reached £270,300 as of October 2025 (published November 2025), marking a 1.1% increase over the past year. Despite the market uncertainty caused in the run-up to the Autumn Budget, the increase is similar to the previous month and only slightly below the 1.7% annual growth recorded last year.
According to Zoopla’s latest index, several regional markets have significantly outperformed the national average, showcasing why buy to let continues to be a top choice for investors who select the right growth markets.
Leading the charge are the top five growth cities:
- Belfast: Up 7.8%
- Liverpool: Up 3.3%
- Glasgow: Up 2.6%
- Newcastle: Up 2.4%
- Manchester: Up 2.4%
These figures confirm strong, localised momentum for investors focused on regional opportunities.
Rental Market
The UK rental market in November 2025 is demonstrating a slight deceleration in growth, largely consistent with seasonal trends, yet the overall annual momentum remains positive.
According to the November HomeLet Rental Index, the national average rent price for November stands at £1,337, a marginal decline of 0.6% compared to the previous month.
When excluding London, this pattern holds, with the average rent falling by 0.4% to £1,133. Crucially, despite this monthly dip, the market’s underlying strength is evidenced by a +2.3% increase in average rents year-on-year.
On a regional level, average rents have seen annual growth across the entire UK, with the notable and singular exception being the South East.
Interest Rates
2025 began with interest rates at 4.75%. Since then, rates have seen a significant reduction and currently stand at 3.75% following the latest Bank of England base rate decision (18 December 2025).
Market speculation suggests further easing in 2026, with strong indications that rates could fall again, albeit at a slower pace, throughout the year. This downward trajectory provides a more favourable lending environment for new and established investors as we enter 2026.
Source: Bank of England.
Why Buy to Let Worth is Still in 2026?
Both investors and homebuyers were cautious in the run-up to the Autumn Budget; however, with no major new property tax changes on the horizon, there is a much clearer outlook for property investors in 2026.
For landlords and investors, the Renters’ Rights Act and Making Tax Digital will certainly require care and attention; however, as both of these policy changes have been in the pipeline for many years, they will not come as a surprise.
With the Renters’ Rights Act now a reality, this exclusive 3-part series provides the exact know-how you need to master the new tenancy system, understand eviction changes, and stay ahead of the curve.
You can access free online Renters’ Rights Act training by becoming an LIS Member. Simply follow the link to set up your account and start your 3-part online training.
2026 Property Market Forecast
Looking ahead, the buy to let market boasts a highly positive 5-year outlook for property values. The latest forecast from Savills predicts that property values across the UK will experience a significant average increase of 22.2%. This impressive growth is expected to be led by regional markets, which continue to present the best potential for investor uplift: Yorkshire and The Humber and the North West are forecast to see massive +28.8% gains, with Scotland, Wales, and the North East following closely behind with a projected +27.6% increase. This data clearly underscores the compelling long-term capital growth potential available to investors targeting strategic regional hubs.
2026 Rental Market Forecast
Echoing strong capital growth projections, Savills’ forecast for the rental sector is equally compelling.
Their 2026–2030 rental forecast anticipates a robust upward trend, with average UK rents expected to climb by a significant 12% over the five-year period.
While London historically leads the charge, the forecast indicates a balanced picture of growth across the country, with the capital’s rental values projected to rise by a close following 11.5%.
This sustained outlook for rental appreciation further solidifies the income-generating appeal of buy to let investment across the entire UK market.
The buy to let investment landscape continues to offer plenty of positives for those looking to expand their portfolio. However, success today requires a shift in mindset. The era of the ‘hands-off’ landlord is over. Investors who succeed in the coming year will be those who actively operate their rental properties like a structured business and commit to delivering high-quality accommodation. This professional approach is the clear path to make buy to let worth it in 2026 and beyond.
Advice for New Investors
The tangible nature of bricks and mortar still continues to attract new investors year after year. Seen as less volatile (and complicated) compared to stocks and shares, residential buy to let property has a real appeal to new investors and soon-to-be landlords.
In today’s market, finding a rental investment property is just one piece of the puzzle for new investors. Seeking advice from professional service providers, including mortgage and insurance brokers, financial advisors, management companies, developers, property consultancies and solicitors, will help paint a clearer picture of how to build a robust and profitable portfolio.
Ready to buy your first investment property in 2026? Don’t go it alone. Secure your free ticket to the National Landlord Investment Show in 2026. You’ll gain crucial, actionable knowledge directly from seasoned property professionals, giving you the confidence and know-how to successfully launch your buy to let journey.
Book your free tickets to the National Landlord Investment Show in 2026. The National Landlord Investment Show is kicking off their events calendar with the first of the year on 24th March 2026 in London, Old Billingsgate. Get your free ticket now if you’re looking at 2026 for buy to let investment opportunities.
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