How Landlords can slash their buy-to-let costs

The buy-to-let sector has been targeted by the chancellor through the 3% stamp duty increase as well as the wear and tear allowance.

This has left landlords looking at other ways in which they can save money on their portfolio. The following tips will help to save money without having to hand it all over to the taxman.

Evaluating your portfolio

This means taking a look at what properties are available at a knock-down price that offer good rental returns. There are many areas that are on the increase but also have low house prices. Beyond London, many of the area have seen house prices stabilised and these are often ideal places to purchase.

Areas such as Luton and Swindon are high on the list as well as Manchester and Liverpool where yields are around 5-6%.

Find a new mortgage deal

Interest rates are at the lowest they have ever been and this means that landlords can get excellent deals. This can help to reduce mortgage repayments and this means more of the rent can go into your pocket. It also allows you to release some equity that can be used to increase your portfolio.

Rates have fallen and this can be seen in the average rate dropping from 5.21% that was seen in 2011 to 3.32% which can be found today. The average rate for five year deals has also dropped.

Take a look around for insurance

Insurance is a crucial tool for all landlords as it offers protection for their property and their returns.

Check your renewal quote against previous years and find out what you are covered for. You may be paying for cover that you do not need or you may even realise that you need extra cover.

Putting the right security measures in place can help to bring the cost of your cover down and you could always increase your excess in order to bring costs down.

Expenses Claims

While the mortgage interest relief is being changes there are other expenses that you can claim back. All fees that are linked to your buy-to-let property investment can be offset against your final tax bill along with insurance premiums and mortgage arrangement costs.

The smaller things such as stationery and even your phone bill all add up so ensure that you claim for these.

Is a letting agent necessary?

While a letting agent can do all the hard work for you, they do charge a decent fee for their time and expertise. Some charge as much as 10% and while this may be worthwhile, it is still a large chunk of your income so downgrading the service that you use can save a considerable amount. In fact, you could even manage the whole thing yourself if you have the time, helping you to save even more money.

Run it through a limited company

You could run your buy-to-let business through a limited company and this would mean you would pay corporation tax which is being reduced over the next few years from 20% to 17%. You would also benefit through not having to succumb to the mortgage interest relief changes that affect individuals.

Mark Burns

Mark Burns is a Director and Property Investment Consultant at Hopwood House. With over 10 years' experience in property investment, Mark has provided investors with a wide range of opportunities in exotic locations around the world.

You May Also Enjoy

Home and Living

High Quality Modular Homes for the UK

Are you looking for added accommodation space in your garden / on your land? Modular Living Homes by tutumHOUSE offer a new way to live – minimalist in form, rich in experience. “There are approximately 9.6 million homes in the UK with a garden shed, and around 52% of the population owns one.” asgardsss There…
Read More
Estate Agent Talk

The most stressful places to move to in the UK

With more people in the UK moving homes during summer than any other season and the average cost of moving in the UK rising to over £14,000, picking the right place to move to has become more crucial than ever. Luckily, new research from Pay Less for Storage reveals the UK cities that make life easiest…
Read More
Estate Agent Talk

Time-Traveling Estate Agent Sequel Climbs Amazon Charts

A UK Estate Agent Currently Bringing Joy to People’s Lives – Shame He’s Fictional…   Eric Meek, the fictional estate agent created by author Dale Bradford, is back for a second outing in The Time‑Travelling Estate Agent 2, a sequel that is already climbing Amazon’s bestselling time‑travel rankings. Estate agents were recently highlighted as the third…
Read More
Estate Agent Talk

Is it finally time for lenders to back green homes?

Andrew Smith weighs the risks and rewards Property developers are increasingly pitching green homes to lenders; however, with sales cycles slowing down and repair costs rising, is now the right time to back sustainable builds and at what price point is there market demand? Sustainability is continuing to shape our future of construction with the…
Read More
Breaking News

Breaking Property News 24/07/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   OpticWise – digital infrastructure in commercial real estate If your building were a product, how would it perform on the user experience scale?  Week 9: Experience as Infrastructure – Designing for Human-Centric Buildings Welcome to Week 9 of our 52-week journey into the future…
Read More
new build homes colchester essex
Breaking News

UK Housebuilding Falters as Construction Hiring Flatlines

New research from Inventory Base reveals that UK construction industry employment has increased by almost 11% in the past five years, but there has been less than 1% growth in the past 12 months. Inventory Base’s analysis of the UK construction industry shows that in 2024 (latest data available) it employed an estimated total of…
Read More