Is Buy-to-Let worth it in 2026?

What landlords in Bournemouth, Poole and Christchurch need to know

For many years, buy-to-let has been one of the UK’s most popular forms of investment. But in 2026, the landscape has changed considerably. Higher costs, increased taxation, new legislation and changing mortgage rates are making landlords ask an important question: is buy-to-let still worth it?

For landlords in Bournemouth, Poole and Christchurch, this question is particularly relevant. BCP Council’s own housing strategy highlights the pressure on the local housing market, with an average private-sector rent of around £1,500 a month for a three bed house and significant reliance on the private rented sector.

The answer isn’t necessarily yes or no. It depends on the individual property, mortgage, rental income and how effectively the investment is managed.

Sharon Canning. Owner of Move On Sales and Lettings

1. Is buy-to-let still profitable?

Landlords are facing considerably more costs than they did several years ago. Mortgage rates remain higher than the exceptionally low rates many became accustomed to, while taxation, maintenance, insurance and compliance costs have all increased.

The additional 2% tax on rental income due from 2027 will add further pressure for some landlords.

This means landlords need to look beyond the headline rental income and calculate their true net return after mortgage costs, tax, maintenance, insurance, management fees and potential void periods.

For some properties, the figures will still work extremely well. For others, landlords may decide that selling is the better option.

2. The Renters’ Rights Act – the reality is now here

The Renters’ Rights Act has fundamentally changed the private rented sector.

Since 1 May 2026, Section 21 has gone and assured shorthold tenancies have been replaced by assured periodic tenancies. Landlords must now understand the new possession grounds, notice requirements and their continuing responsibilities to tenants. BCP Council confirms that its enforcement powers have also been expanded under the new legislation.

And there is more to come.

BCP Council’s guidance states that the next phase includes the introduction of a mandatory Private Rented Sector Database and a Private Rented Sector Landlord Ombudsman, with further changes planned around EPC requirements and the Decent Homes Standard.

For local landlords, compliance is becoming increasingly important. BCP Council has made clear that it will work with landlords where possible, but it also has powers to take enforcement action where serious non-compliance is identified.

3. What happens if landlords continue to sell?

There is another issue that shouldn’t be overlooked.

If increasing taxation, regulation and costs encourage more landlords to leave the sector, the number of properties available to rent could fall even further.

Yet demand for private rented accommodation remains strong in the BCP area.

This creates an interesting situation: fewer rental properties combined with strong tenant demand could continue putting upward pressure on rents.

For landlords, this could support rental income. For tenants, however, it could make finding an affordable home increasingly difficult.

BCP Council itself identifies the private rented sector as an important part of meeting local housing needs, making the role of responsible private landlords particularly important to the area.

4. Could mortgage rates change the picture?

Mortgage costs remain one of the biggest factors affecting landlord profitability.

For landlords coming to the end of a fixed-rate mortgage, refinancing at a higher rate can dramatically change the monthly figures. However, if mortgage rates continue to ease, this could provide some welcome relief.

A relatively small reduction in mortgage costs can make a significant difference to a property’s annual cash flow.

This is why landlords should regularly review their mortgage arrangements rather than simply allowing an existing deal to roll over without checking the alternatives.

SO, IS BUY-TO-LET STILL WORTH IT?

Yes – but it has become a much more sophisticated investment.

The days when landlords could simply buy a property, collect the rent and rely on rising property prices are changing.

Successful landlords in 2026 need to understand their numbers, keep up with legislation, review their financing and make sure their properties remain attractive to tenants.

For some landlords, selling may be the right decision. For others, holding and continuing to invest could prove very rewarding.

The key is to make the decision based on your property’s actual performance rather than headlines or assumptions.

For landlords in Bournemouth, Poole and Christchurch, understanding the local market is just as important as understanding the national picture.

At Move On, we believe good property management is more important than ever. With legislation continually changing and the cost of getting things wrong increasing, having an experienced local letting agent on your side can help landlords protect both their investment and their income.

 

CONTACT

T. 01202 711169

420 Poole Rd, Branksome, Poole BH12 1DF

www.moveonsalesandlettings.co.uk