Buy-to-Let

Buy-to-let is the model where you purchase a property specifically to let it to residential tenants under a private tenancy, usually financed with a buy to let mortgage and operated as part of your rental business or wider property portfolio in the Private Rented Sector (PRS).

From a landlord’s perspective, buy-to-let is less about the label and more about the duties that follow once you grant an assured tenancy, or other private tenancy, using a written tenancy agreement. Under the Renters’ Rights Act, that means:

• Meeting national rental standards and keeping the home fit for human habitation, including tackling damp and mould in line with Awaab’s Law.

• Complying with energy efficiency rules such as Minimum Energy Efficiency Standards (MEES) and Higher rate efficiency standards (HRAD).

• Taking only permitted payments, handling tenancy deposits within the cap and a recognised scheme, and avoiding prohibited payments.

• Being ready, if things go wrong, to rely on the reformed possession grounds and seek a possession order through the courts when regaining possession.

Modern buy-to-let also ties you into system-wide regulation, including joining the Private Rented Sector Ombudsman, registering on the PRS Database, and cooperating with the Local Housing Authority (LHA) on licensing, for example an HMO licence, and any enforcement action.

Also see our landlord blog articles.