Question 1

What is a good rental yield?

Accepted Answer

UK average gross BTL yield is approximately 5.8%. Yields above 7% are generally considered good, while below 4% may not justify the investment risk. Yields vary significantly by region.

Question 2

What is Section 24?

Accepted Answer

Section 24 phased out mortgage interest tax relief for individual landlords (2017-2020). Mortgage interest is now a 20% tax credit rather than a deductible expense, which increases tax for higher-rate landlords.

Question 3

Do I pay SDLT on buy-to-let?

Accepted Answer

Yes, additional properties (including BTL) incur a 5% SDLT surcharge on top of standard rates in England and Northern Ireland. Scotland and Wales have their own surcharges.

UK Buy-to-Let Yield Calculator

Property Details