Latest news with #buytolet
Times
12-07-2025
- Business
- Times
Will new tax rules mean holiday lets aren't worth the hassle?
We own three buy-to-let properties already, and instead of adding a fourth standard rental, my wife and I are tempted by the idea of buying somewhere we could enjoy ourselves. We visit the Lake District regularly and it would be nice to have our own place there. The plan would be to use it for family holidays but rent it out as a holiday let for most of the year to cover the mortgage and running costs. But I keep reading about tax changes affecting holiday lets and new rules about planning permission and licensing. Are we being naive in thinking this could work both financially and practically? I don't want to end up with an expensive second home that's more hassle than it's Guildford The timing isn't great for getting into holiday lets. The tax advantages that once made them attractive compared to standard buy-to-lets have disappeared: in April 2025, the Furnished Holiday Lets regime was scrapped. Previously you could deduct mortgage interest in full, claim capital allowances on furniture and pay only 10 per cent capital gains tax when you sold. Now such properties are taxed as if they were standard buy-to-lets, which means owners are facing significantly higher bills for the same level of profit. • Read more expert advice on property, interiors and home improvement You'll also need to balance your personal use with letting carefully to hit the thresholds that allow you to qualify for business rates rather than council tax. In England (with variations elsewhere), your property needs to be available for letting at least 140 nights a year and actually let for 70 nights. Miss those targets and you'll have to pay council tax — potentially with a 100 per cent second-home premium on top, which is being enforced by many councils in holiday hotspots. The regulatory side is becoming more complex too. In England a national registration scheme for short-term lets is still in the pipeline, as are new planning restrictions. While existing holiday lets will receive permission automatically, local authorities will be able to use Article 4 directions to stop you converting a family home or a buy-to-let into a holiday let. Putting tax and regulation aside, your biggest challenge is balancing personal use with earning potential. For example, if you want to stay there during the school holidays, you're giving up the property's best earning weeks. So you need to decide whether you're treating this primarily as an investment or lifestyle purchase. If it's purely about the numbers, run them using conservative occupancy rates and realistic costs — including your own time dealing with bookings and guests. If it's more about having somewhere nice for the family, that's fine — but work out what that will actually cost you compared to putting the same money into another buy-to-let and paying for your holidays out of pocket. Our view is that holiday lets are going through the same transition the wider buy-to-let sector has experienced over the past decade: it's still possible to do well if you take it seriously as a business, but it's becoming much less attractive for casual operators and many of the less committed players will be shaken out. You can probably make it work if you're determined, but having the best of both worlds — great family holidays and strong investment returns — probably isn't realistic any more. Submit your questions for the Two Robs at Rob Dix and Rob Bence present The Property Podcast and are co-founders of the property education platform Property Hub. Buy Rob Dix's book, Seven Myths about Money (Cornerstone £18.99) from or call 020 3176 2935. Discount for Times+ members
Times
11-07-2025
- Business
- Times
Is this the best town in Britain for landlords?
T he letting agent Ashley Leaper says there has never been as much excitement about buy-to-let in her town. In the past year her company, Letting Angels, which she started in Redcar more than 20 years ago, has had a surge of calls about rental properties. 'International interest has increased,' said Leaper, 47, who has an office in the centre of Redcar. 'We're getting more calls from investors overseas, especially expats.' Her experiences, however, do not reflect the general state of the buy-to-let market, suggesting that her North Yorkshire town is bucking the trend. Tighter regulations, stamp duty rises, the removal of tax breaks and new energy efficiency rules have increased costs for buy-to-let owners, making it harder for them to make a profit — driving landlords out of the market rather. HM Revenue & Customs research in May found that one in five were looking to sell up in the next 12 months.
Irish Times
11-07-2025
- Business
- Irish Times
Does it make financial sense to buy a holiday home?
Got any holidays planned? With the high cost of a house rental, resort or hotel stay in Ireland this summer, owning a bolt-hole of your own can appeal. But how much will it cost, and can you make it pay? Unless you can buy in cash, you will need a mortgage to buy a holiday home. The maximum loan-to-value a bank will offer for such a property is 70 per cent, says Michael Dowling of Irish Mortgage Brokers. Take for example a €300,000 holiday home, like No 10 Ballyconneely Holiday Homes in Galway, which is currently for sale at that price. With a 70 per cent loan of €210,000, you will need to come up with €90,000 yourself. When it comes to repayment, most lenders restrict the term for holiday homes to 25 years, says Dowling. READ MORE Bank of Ireland, AIB and PTSB all lend for holiday homes. However, you will have to pay 'buy to let' interest rates , which are more expensive than typical residential mortgage rates. [ Mayo housing official apologises for 'distress' caused by holiday home boycott proposal Opens in new window ] Even if you don't plan to rent out the property, or you plan to use it to work remotely for months at a time, you will still pay buy-to-let rates because it's not your primary residence. 'You are looking at rates from 4.85 per cent to 5.75 per cent on a variable basis, which is significantly higher than what's available for a [family] home loan,' says Dowling. Newer lenders Avant, MoCo and Nua Money don't lend for holiday homes. Haven, a subsidiary of AIB, will lend for holiday homes at home loan rates, says Dowling. You can still only borrow 70 per cent of the purchase price, but variable rates are between 3.75 and 3.95, or between 4.15 and 4.35 for a two- or five-year fix, Dowling adds. Monthly repayments on a €210,000 mortgage over 25 years at 4.35 per cent would be about €1,150 a month. Cost benefit Compared to the cost of staycations over 25 years, is there a case to be made for a monthly mortgage payment on a holiday home? Families are paying big money from now until the end of August for a week in tourist hotspots such as Brittas, Ballyconneely and Baltimore. Holiday rentals range from €1,500 to €2,700 for a week in high season. Take for example a four-bed, three-bath house in Rosslare Strand, Co Wexford, which is currently for rent for €1,550 a week. Or, you'll pay €2,200 for seven nights in a house in Brittas Bay Park, Co Wicklow, this month. Looking ahead to July 2026, a seven-night stay in a three-bed self-catering lodge at Centre Parcs in Co Longford will set you back €3,250. If you've got children or grandchildren, then family getaways in summer, at school midterms, at Easter and at the new year can all really add up. Few families will spend €13,800 – the annual mortgage on your €300,00 holiday home – on holidays in a year. But by spending that on a holiday home, it could be argued you are investing in a potential asset too. Running costs Of course, the full cost of owning a holiday home is more than just the mortgage. You'll have to pay property tax, electricity, gas, the TV licence, and home insurance, as well as for ongoing maintenance and repairs. Basically, think of all the costs you have in running your regular home, and double them. While utilities will cost less than your primary residence, some heating when you are not present may be needed to ward off dampness. And apart from those with a preference for a rustic break, you'll probably want a similar level of comfort to your regular home. That means broadband and TV subscriptions too. Grass-cutting is another overlooked cost. If you are not there to do it, you'll be paying someone. Depending on the size of your grounds, this could be between €500 and €700 a year. Also, bin charges even for the holiday season will come to about €30 or €40 a month. If you are buying in a holiday development, expect to have to pay management fees too. These can be pretty hefty, depending on the grounds and amenities. [ Airbnb landlords and holiday home owners are squeezing native speakers out of Gaeltacht areas Opens in new window ] Take a three-bed, two-bath mobile home at Jack's Hole resort at Brittas Bay, which is currently for sale for €312,500. Amenities at the mobile home park, which has a private beach, include tennis, boules, volleyball, basketball, a games room, children's play areas, a soccer pitch, boat moorings and water sports. Management fees here are a hefty €5,000 a year. Rental income The majority of second homeowners don't rent them out, estate agents will tell you. Those who do can recoup some of their costs, but they will incur others. If you are using a letting company to advertise the property and to manage bookings, clean between bookings, respond to guest queries and oversee repairs, they will take a percentage of the rental income as their fee. And any income from renting a property will be taxed at up to 52 per cent, depending on your marital status, tax credits, reliefs and other income. If your home is used as a dwelling for fewer than 30 days in a full year, you'll have to pay the vacant homes tax. If you are one of those who use a holiday home for just two weeks in the summer and again for a week each Easter and at the October midterm, you'll fall into this category. Having risen progressively since its introduction in 2022, the tax for the chargeable period ending October 31st, 2025, is seven times the local property tax applying to the home. If you own a second home valued at €300,000 that is occupied for fewer than 30 days a year, you will pay the annual local property tax of about €315, plus an additional charge of €2,205 a year, for a total owner liability of €2,520 a year. Latest census figures show there were 66,135 vacant holiday homes in April 2022, an increase of 4,000 since 2016. The most popular counties for homes used for recreation or leisure are Donegal, Kerry, Cork, Wexford and Mayo, according to CSO figures. There were 339 vacant homes in Cork liable for the vacant homes tax in its first year, 308 in Donegal, 298 in Kerry, and 236 in Mayo – all holiday home hotspots. You can contact us at OnTheMoney@ with personal finance questions you would like to see us address. If you missed last week's newsletter, you can read it here .
Daily Mail
08-07-2025
- Business
- Daily Mail
I'm a property expert... Rob Dix on house prices, mortgage rates, buying tips and his best ever investment
Property is a favorite British conversation topic. Nearly everyone has an opinion on where house prices are heading, the next property hotspot or where homes should - and shouldn't - be built. But to get a true sense of what's driving the market, it is worth listening to the people who live and breathe property day in, day out. In this series, we put an expert through their paces each month. We want to know their view on all of the hot-button topics mentioned above as well as mortgage rates, buy-to-let and housebuilding. We will even question them about their very own mortgage, and their best and worst investments to date. This month we spoke to Rob Dix, co-founder of Property Hub, a buy-to-let sourcing company that puts together over £100 million of property deals each year for its clients. Rob is also co-host of The Property Podcast and a bestselling author with books including two Sunday Times bestsellers; 'Seven Myths About Money' and 'The Price Of Money.' He is also a portfolio buy-to-let investor, having bought his first rental property over a decade ago. Last year, we interviewed Rob on why he and his family prefer to rent the property they live in rather than opting to buy. 1. What will house prices do over the next 12 months? I think house prices will rise by at most, 2 per cent on average, continuing the pattern of the last couple of years of prices slightly falling in inflation-adjusted terms. We'll continue to see big regional differences, with higher growth in the north and smaller, less expensive properties performing better than larger, pricier ones. 2. What will happen to prices over the next decade? The most likely scenario is that property prices continue to rise at the same pace as inflation, or a little faster, as they have done historically over the long term. At some point in the next ten years we'll probably have a boom and a crash as they tend to happen every so often, but it's impossible to predict the timing. It doesn't sound exciting but if you use a mortgage so your debt is fixed, just regular inflation-linked growth can lead to great results over a decade. 3. Where will mortgage rates be in 12 months? I imagine we will see buy-to-let mortgage rates settling in the fours, maybe half a percent or so lower than they are now. 4. Why do you prefer renting where you live? Living where I do in London, renting actually works out cheaper than owning. But I'd opt to rent regardless because I don't know where or what size of property I want to be living in in five years' time. Buying would incur such huge stamp duty costs that it really wouldn't make any sense. Renting isn't throwing money away any more than paying mortgage interest is throwing money away, as long as you're also investing in assets. 5. What mortgage do you go for on your buy-to-lets? I always use interest-only loans because it's counterintuitively safer: the monthly payment is lower, which keeps expenses down if you do end up having a period when rent isn't coming in. There's always the option of over-paying. I always fix for five years to reduce fees and have more certainty, and would only recommend going shorter if you plan to withdraw equity from your portfolio. 6. What is the most urgent property crisis? In my opinion, the lack of social housing puts too much reliance on the private rented sector and prevents the people most in need of support from having the security they need. So-called affordable housing is a fudge that doesn't solve the problem. 7. Will Labour hit its 1.5 million home target? No, because no government in living memory has ever hit its home building target. With so little social housing being built, it's not something the government realistically has control over. 8. What could stop house prices rising? House prices always eventually hit an affordability ceiling where buyers can't pay any more based on their income, so if we fail to see productivity growth and therefore wage growth, that will keep a brake on house prices. But the only thing I can think of that would make a major dent in house prices would be much tougher restrictions on mortgage lending, which doesn't seem likely to happen. 9. Are landlords being unfairly targeted? Although they haven't been popular among investors, I can see the sense of the moves that have been made over the last decade to curb the buy-to-let sector and professionalise it. However, I can see landlords continuing to be disproportionately targeted because there's little political risk in doing so. There are of course a minority of incompetent and even criminal landlords, but for the most part, the rules to prevent them exist – they're just being poorly enforced. 10. Is buy-to-let a good or bad investment today? It's a good investment if you approach it for the long term and you use a mortgage. Compared to any other kind of investment you can make, you can buy three times as much of it by using debt that's guaranteed to shrink as a result of inflation. You've also got a rental income stream that tends to rise in line with inflation, and the lack of volatility means that it's an investment that some people are more comfortable with compared to the stock market. 11. If you could pick one area to invest in property for the next decade, where would it be? It would be any city or popular commuter town in the North West. It's the region that's been performing best and is projected to keep doing so over the next five years. It's also an area where there's headroom for prices to grow, and rental growth is strong too. 12. What one location would you be avoiding? The South East, outside London. Affordability is so restricted there just isn't any room for prices to meaningfully rise, and yields are low. 13. Prime central London prices are below their 2014 peak: Will it boom again? London will always be a safe bet over the long term, but with the UK becoming less popular internationally as well as the extremely high stamp duty costs which add potentially hundreds of thousands of pounds to the purchase price of a prime London property, I can't see it having a strong rebound. 14. If you were Chancellor of the Exchequer, how would you help first-time buyers? Most initiatives intended to help first-time buyers serve only to increase house prices, so I wouldn't bring back anything like Help to Buy. I'd be more inclined to introduce a policy like exempting the first, say, £100,000 of lifetime earnings from tax, making it easier for people early in their careers to save whether that's for a house or something else. 15. Do you have any negotiation tips for buyers making offers to estate agents? Many sellers are looking for certainty rather than the highest price, so make sure you have a mortgage offer lined up, a solicitor in place and can demonstrate that you are organised and ready to proceed. Then if your offer is rejected, do keep following up because a third of transactions end up falling through. 16. What's the best piece of advice you'd give to someone looking to get on the ladder? Have wealthy parents. Or, more seriously, don't rush if you're not sure that you'll want to stay put for at least five years. While there's a perception that house prices always run away from you, I don't think there will be any rapid growth in the near future. Transaction costs are brutal, and you only quality for first-time buyer stamp duty benefits once. 17. What's the one piece of advice you'd give someone planning to sell their home this year? Do your own online research into what you think it's worth and don't let estate agents talk you up to something that's unachievable. Data shows that once something has been mispriced and sat on the market, it's much less likely to ever sell. 18. What's your best ever property investment? A house in Nottingham that I bought in May 2020 at the peak of Covid panic when the market was effectively shut down. This allowed me to get it at a great price, I've had the same tenants in there ever since, and I forget I own it for months on end. 19. What's the worst investment you've ever made? Houses in Hull where I got a good deal, but they're not in the most desirable area so prices have been flat compared to stronger locations. Also, the rents are so low that a small repair can wipe out months of profit. 20. What would you do if you inherited £100,000 tomorrow? The answer is very specific to my personal goal of generating wealth over the long term, and won't be right for everyone. But boringly, I would use a mortgage to buy a modest family home in a quality area in the Midlands or the North, price the rent slightly below market rates so I had a huge pool of applicants to choose from, then let it quietly sit there for years on end. How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
Daily Mail
24-06-2025
- Business
- Daily Mail
Record number of buy-to-let mortgage deals as average two-year rates drop below 5% for first time since 2022
Landlords are being spoilt for choice with the number of buy-to-let mortgages rising to a record high, according to new figures. The total number of buy-to-let deals across the market has reached 4,144, according to rates scrutineer, Moneyfacts. This is the highest count on record since it began tracking buy-to-let deals in November 2011. The number of buy-to-let deals has almost doubled since June 2023 and there has been a 42 per cent increase since this time last year, when there were 2,935 deals available. With competition between lenders on an upward trajectory, mortgage rates have also fallen over the past year. Moneyfacts says the average two-year fixed rate buy-to-let deal has dropped below 5 per cent for the first time since September 2022. Investors looking to buy or remortgage with a 25 per cent deposit or equity stake can now get an average two-year fix at 4.96 per cent compared to 5.59 per cent this time last year. On a £200,000 interest only mortgage, that's the difference between paying £826 a month and £932 a month. Those with a 40 per cent deposit or equity stake can secure 4.46 per cent on average, according to Moneyfacts, down from 5.25 per cent this time last year. On a £200,000 interest only mortgage, that's the difference between paying £743 a month and £875. It's a similar story for those looking to fix for five years, albeit not quite as extreme. The average five-year fix for those buying or remortgaging with a 40 per cent deposit or equity stake is now 4.51 per cent, down from 4.93 per cent a year ago. Rachel Springall, finance expert at Moneyfacts thinks landlords should benefit from the rise in available deals. 'Both the two- and five-year fixed rates have fallen for the fourth consecutive month,' says Springall. 'The average five-year fixed buy-to-let rate is now at its lowest level in over six months, but year-on-year the rate has not dropped as viciously as its two-year counterpart. 'Lenders monitor swap rates to gauge future rate expectations, and when they drop it encourages mortgage rate cuts. 'Lower buy-to-let rates might create a positive sentiment for new and existing landlords, however, there will be immense pressure on some to turn around a profit in the future.' What are the best rates? Many of the lowest buy-to-let mortgage rates come with staggeringly high fees. These can be as high as 10 per cent of the total mortgage amount in some cases. On a £200,000 mortgage that would equate to £20,000. This means it's essential for landlords to look at the overall cost of the mortgage and factor in both the fees and the interest rate. While buy-to-let rates have improved on average compared to last year, many investors will find they can now secure rates below 4.5 per cent and do so without incurring massive product fees. For example, a landlord remortgaging to a five-year fix with at least 40 per cent equity in the property can get 4.28 per cent with NatWest, with a £59 fee or 4.29 per cent with HSBC with no fee. A £200,000 mortgage fixed at 4.29 per cent on an interest only basis would cost £716 a month. The best two-year fixed rates are slightly more expensive, but only marginally. A slight quirk in the market is that there is little difference at present between the best rates for those buying with or remortgaging with 25 per cent deposits or equity and those doing so with 40 per cent. For example, HSBC is offering those remortgaging at 75 per cent loan-to-value the chance to fix for five years at 3.94 per cent, albeit with a £3,999 fee attached. The lender is also offering a £1,999 fee option with a rate of 4.19 per cent. How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
