## Wealthy Investors Increasingly Embrace Buy-to-Let

A recent study conducted by Rathbones, a wealth and investment management firm, reveals that buy-to-let (BTL) investment continues to be popular among affluent UK investors. The research, which surveyed 3,092 UK adults with investable assets up to £2.5 million, found a marked increase in BTL investment as wealth grows. While only 4% of investors with assets between £25,000 and £250,000 invest in buy to let, this figure rises sharply to 35% among those holding more than £2.5 million in investable assets.

Isabella Galliers-Pratt, senior investment director at Rathbones, explains this trend: “As wealth increases, investors are more willing and able to take on higher levels of risk. Greater financial resilience gives them the confidence to explore opportunities beyond mainstream wrappers.” She adds that the appropriate investment route depends on factors such as time horizon, risk tolerance, and personal tax circumstances.

## Legislative and Financial Challenges for Landlords

Despite its continued popularity, Rathbones warns that the appeal of buy to let has diminished in recent years. Since 2016, house price growth has barely kept pace with inflation, limiting capital appreciation for landlords. Additionally, a series of tax and regulatory changes, including the Renters’ Rights Act, Making Tax Digital, and selective licensing, have increased the complexity and cost of managing rental properties.

Higher borrowing costs have further eroded potential returns, particularly for leveraged buy-to-let investments. These factors combined mean that many BTL investments are now less attractive when considering the risk-adjusted returns, especially for those relying on mortgage finance.

## What This Means for UK Landlords

For landlords and letting agents, the findings highlight the importance of carefully assessing the financial viability of buy-to-let investments in the current market. While wealthier investors may have the capacity to absorb risks and navigate complex regulations, others may find returns squeezed by rising costs and legislative burdens.

Understanding individual risk tolerance, tax position, and investment time frame remains crucial. Landlords should stay informed about ongoing regulatory changes and consider how these impact their portfolios’ profitability and compliance obligations.

## Conclusion

Buy to let remains a significant investment avenue for wealthy UK investors, but it is no longer as straightforward or lucrative as in previous years. The combination of subdued house price growth, increased taxation, regulatory complexity, and higher borrowing costs means landlords must approach BTL with a clear understanding of the risks and challenges involved.

Suggested internal link anchors
– buy to let investment
– tax and regulatory changes
– Renters’ Rights Act
– Making Tax Digital
– selective licensing
– borrowing costs
– risk-adjusted returns
– leveraged buy-to-let
– investment time horizon
– landlord compliance
– property portfolio profitability
– financial resilience

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/