Buy-to-let explained: costs, rules and duties

Buy-to-let can involve upfront tax, legal duties around deposits, and rules on a property’s energy rating. This guide explains the main rules, and it also notes where the evidence is incomplete.

The costs of buying to let

One verified cost in the facts provided is the higher rate of Stamp Duty Land Tax for additional properties. The SDLT surcharge is 5% in 2026, after rising from 3% to 5% on 31 October 2024. There is also a verified exception for a replacement main residence: if the previous main home was sold within 36 months of completing the new purchase, the extra 5% does not apply; otherwise the higher rates are paid first and a refund can be claimed.

Deposit protection rules

For assured shorthold tenancies in England and Wales that started after 6 April 2007, a landlord or letting agent must put the tenancy deposit into a government-approved scheme within 30 days of receiving it. Within the same 30 days, the tenant must be told the property’s address, the amount paid, how the deposit is protected, and the scheme’s name and contact details. The deposit must then be returned within 10 days of the amount being agreed.

Energy rules for rentals

Since 1 April 2020, landlords cannot let a property with an EPC rating below E unless a valid exemption applies. They are also not required to spend more than £3,500 including VAT on improvements under these rules.

The Renters Rights Act changes

The Renters Rights Act 2025 received royal assent on 27 October 2025, and that the tenancy changes started on 1 May 2026. Since those changes began, the most common type of tenancy is an assured periodic tenancy.

What this guide does not cover

This guide covers the deposit rules, the SDLT surcharge, the EPC minimum, the Renters Rights Act tenancy changes and landlord safety duties. It does not cover mortgage lending, tax beyond the points above, licensing, repairs or eviction rules in depth.

Key facts

Buy-to-let mortgages are regulated by the Financial Conduct Authority. There is no single government page covering buy-to-let mortgage basics: the FCA’s consumer mortgage guidance and lender pages are the primary sources.

Landlord safety duties: an annual gas safety check by a Gas Safe registered engineer (with the record kept for two years), right-to-rent checks on tenants, and an electrical installation condition report at least every five years.

Source: MoneyHelper - Buy-to-let mortgages — Guidance checked August 2026

Source: GOV.UK - Your landlord’s safety responsibilities — Guidance checked August 2026

Source: GOV.UK - Prove your right to rent — Guidance checked August 2026

Source: GOV.UK - Tenancy deposit protection — Guidance checked August 2026

Source: GOV.UK - Tenancy deposit protection — Guidance checked August 2026

Source: GOV.UK - Tenancy deposit protection — Guidance checked August 2026

Source: GOV.UK - Stamp Duty Land Tax — Guidance checked August 2026