Brick Wall Building

What is buy-to-let?

In its simplest form, buy-to-let is where a property is bought specifically to be rented out to tenants rather than lived in by the purchaser.

Investors can make money this way by generating an income via the rent charged (so long as it's more than the monthly buy-to-let mortgage repayments), making a capital gain when they come to sell or, in many cases, both.

But, like all investments, there are risks attached to buy-to-let.

For example, you could be hit by rising interest rates, stuck with difficult tenants or unable to sell if the housing market changes.

And times are tougher than ever for buy-to-let landlords with the introduction of higher Stamp Duty taxes and less flexible rules on the tax relief you can claim.

So if you need advice on buy-to-let, check out our comprehensive guide to buy-to-let.