Free Tools for UK LandlordsBuy-to-Let Calculators & Landlord Templates

Gross yield = (annual rent ÷ purchase price) × 100. Net yield = ((annual rent − annual running costs) ÷ (purchase price + buying costs)) × 100. Running costs include management fees, maintenance, insurance and any ground rent or service charge — but not mortgage payments. Enter voids separately as a weeks-per-year allowance; the calculator applies it to net yield only. Net yield is the more useful metric for comparing properties on a like-for-like basis.

Cash-on-cash return (CoC) measures the annual cash surplus after mortgage payments against your equity deployed. Yield measures rental income against the full purchase price. Because BTL purchases are typically leveraged, CoC reflects what your actual cash investment is earning after debt service. A property with a 5% gross yield financed at 75% LTV can produce a very different CoC depending on mortgage rate, term and repayment basis. Use both metrics together for a rounded picture.

From 31 October 2024, a 5% additional dwelling surcharge applies on top of standard stamp duty (SDLT) rates whenever you will own more than one dwelling — buy-to-let, second home, or a new home while keeping a let. Standard rates from 1 April 2025: 0% up to £125,000; 2% on £125,001–£250,000; 5% on £250,001–£925,000; 10% on £925,001–£1.5m; 12% above. So on a £350,000 buy-to-let the total stamp duty is £25,000, against £7,500 for the same house as an only home. Scotland uses LBTT and Wales uses LTT with different rates and thresholds.

Landlords can deduct: letting agent and management fees, repairs and maintenance (not improvements), buildings and contents insurance, accountancy and professional fees, advertising, ground rent and service charge, council tax and utilities during voids, cost of replacing domestic items, and other revenue expenses incurred wholly for the rental business. Mortgage interest is not fully deductible — under Section 24, residential finance costs receive a 20% basic rate tax credit instead. Capital expenditure (improvements, extensions) is generally not deductible but may attract capital gains relief on disposal.

Before April 2017, landlords could deduct all residential mortgage interest from rental income before paying tax. Section 24 of the Finance (No.2) Act 2015 phased this out fully by 2020-21. Now, residential finance costs (mortgage interest, loan interest, arrangement fees) are added back to your net rental income and replaced by a 20% basic rate tax credit. Higher and additional rate taxpayers pay more tax as a result. The credit is: finance costs × 20%. Since 6 April 2025 it also applies to former furnished holiday lets — the FHL regime was abolished and holiday-let income is now ordinary property income. It does not apply to commercial property or to companies.

Since 1 May 2026 (Renters’ Rights Act 2025) every private tenancy in England is an assured periodic tenancy and the only lawful route is a Section 13 notice on Form 4A: at least two months’ written notice, no more than once in any 12 months, and the new rent must not exceed open market rent. Rent-review clauses, fixed-term renewals and informal agreements no longer have effect. Tenants may challenge the notice at the First-tier Tribunal (Property Chamber) before the new rent starts, at no cost; the Tribunal cannot set a rent above the figure proposed. Rules differ in Scotland (Private Housing (Tenancies) Act 2016) and Wales (Renting Homes (Wales) Act 2016).

As a rule of thumb, a gross yield of 5–7% and a net yield of 4–6% is a sound buy-to-let in most of England; London and the South East typically run 3–5% gross with stronger capital growth, while parts of the North and Midlands reach 7–9%. Lenders generally want rent to cover mortgage interest by 125–145% at a stress rate, which sets a floor. Compare properties on net yield and cash-on-cash return, not gross — the Rental Yield Calculator above works out all three.

In England, at least two months, using a Section 13 notice on Form 4A, and only once in any 12 months — this is the Renters’ Rights Act 2025 regime in force since 1 May 2026. A tenancy agreement clause allowing a shorter period, a rent-review formula or an “agreed” increase no longer has effect. The Rent Increase Calculator above shows the new figure, and the Rent Increase Letter Template gives you a plain-English covering letter to send with Form 4A.

Most lenders check that the monthly rent covers the mortgage interest, calculated on an interest-only basis at a stressed rate — commonly the higher of your pay rate plus 2% or 5.5% (lower for five-year fixes) — by a margin of 125% for basic-rate taxpayers or 145% for higher-rate taxpayers and most limited companies. Rent ÷ stressed monthly interest × 100 must reach that figure, which sets the maximum loan the property can support. The Rental Yield Calculator above runs this test and shows the maximum borrowing your rent supports.

The cost depends heavily on fixed monthly outgoings. For a typical BTL with a £900 mortgage, £180 council tax and £60 insurance, a 2-month void costs approximately £2,280 in holding costs alone — plus £2,700 in lost rent on a £1,350 pcm property, totalling over £4,900. One month’s void on a leveraged property with modest rent can absorb 2–3 months’ net income. The Empty Property (Void) Cost Calculator on this page helps model the specific impact for your property.

No. They are indicative planning tools produced by Landlord Tax Enquiry for UK landlords and are not affiliated with HMRC, the government or any regulator. The rates and rules on this page carry a review date at the top of the calculators section; verify at gov.uk before acting, and take regulated advice before filing returns or making significant decisions.