We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.
Newsroom
Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article's content and its accuracy. We may not share the views of the author.
HL Podcast
HL Insight
With interest rates at their highest for years, is buy-to-let property still attractive or should you invest in the stock market?
This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.
Published on 10 November 2023
It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.
Property has long been a go-to option for people looking for a bank-beating return on their excess cash. There are around 2.82 million landlords in the UK.
But the buy-to-let market is changing – here’s how and what it could mean for you, and another option for your money.
This article isn’t personal advice. If you’re not sure if a course of action is right for you, ask for financial advice.
Interest rates have risen meaning landlords having to remortgage at higher rates are getting stung.
In October this year the average five-year buy-to-let mortgage rate was at 6.32%. In 2018 it was 3.4%. A dramatic increase.
And this eats into the profits landlords can make. Landlord’s percentage of profits of rental income after tax have fallen to 3.9% this year. They were around 23% from 2014 to 2021.
For some landlords, rental income might
Read more on hl.co.uk