Investing in property has been coined a ‘smart’ investment for decades – particularly when buying a second property to live in while renting your current home. But with all the market disruption in recent years, is it still a smart move? Let’s find out.
What are the Benefits of Becoming a Landlord in 2025?
There are many benefits to becoming a landlord in 2025, namely the following:
Additional income
Renting your current property and buying a second home to live in generates an additional income stream.
The income generated from one property is, on average, between £16,600 and £17,300 per year (Gov.uk). This is viewed as a good secondary income, retirement income, or full-time income when you let multiple properties.
Building equity
Keeping your current property to rent and buying another to live in can also help you build on any existing equity. By holding onto the asset for longer, you can generate long-term wealth if the asset (i.e., the property) increases in value over time, which, in many cases, it does.
Supporting renters to enjoy ‘better’ living standards
In 2025, the Renters’ Reform Bill (alongside other changes) aimed to create better living standards for tenants. With some experienced landlords exiting the market, new landlords in 2025 are supporting people who find renting beneficial to enjoy these higher standards of living.
What are the Downsides to Being a Landlord in 2025?
Landlords from decades ago will tell you there are more downsides to being a landlord in 2025 compared to years ago. Why? It’s largely because the responsibilities have changed quite dramatically.
Government reforms (like those designed to make living standards better for renters) mean landlords have to undertake more maintenance to get existing properties up to scratch, alongside following more rules.
Working with a lettings agent can make the process much easier, as they take the responsibility of managing a tenancy off your hands.
Services like guaranteed rent can also help manage financial risk by guaranteeing a minimum level of income each year.
Is Buying a Second Property a Smart Move in 2025?
The thing is, landlords have always had responsibilities, so new landlords shouldn’t necessarily be put off by the fact that the duties have increased, or even that more guidelines will be coming into place.
There’s still income to be made when buying a second property and renting your current one, even with the changes. Speaking to a mortgage advisor is a good first step, as is getting in touch with local letting agents.
They can offer an accurate rental valuation of your current property, plus share some advice on what it means to become a landlord in 2025.
Need a Valuation to Decide?
It always comes down to the finances when deciding whether to buy a second property and rent your existing home.
Book valuations today with multiple letting agents in your area to uncover how much your home is worth today. Or get an instant online valuation using our accurate home valuation tool.
Need mortgage advice? Book an appointment online with an expert mortgage advisor today to explore your options and see what the best path is for you.