The average UK landlord has seen an improvement in net returns when accounting for ongoing costs, despite an increase in start-up costs and a reduction in total buy-to-let income, according to Dwelly.

The average start-up cost to become a landlord in 2025 has risen to £16,824, an increase of 63.3% compared to £10,302 in 2024, the rise has been driven mainly by a 76.9% increase in Stamp Duty Land Tax (SDLT), now averaging £14,926 due to higher rates on second properties. Other start-up expenses, such as agency tenant-find fees and digital tax compliance, have remained broadly stable. 

Ongoing annual costs associated with a BTL investment meanwhile have decreased by 24.6% year-on-year, falling from £15,694 to £11,829, with the most notable saving coming from reduced mortgage interest costs, down 39.6% from £10,210 to £6,162. Maintenance and repairs have also seen a modest drop of 5.1%, while void period losses and landlord insurance costs have both increased. 

Sam Humphreys, Head of M&A at Dwelly, said: “Today's rental landscape is more complex, with higher up front costs and slower capital growth. But our research shows landlords are adapting well, supported by falling mortgage costs and a strong underlying rental market. 

“What matters most is the return, and it's going up. That's a strong sign that, even in a tougher market, well managed properties can still outperform.”

The average rental income has edged up by 3.6% over the past year, now sitting at £15,684 annually. The total income from buy-to-let, including both rental income and capital appreciation, has however dipped by 6.6%, falling from £29,901 to £27,923.

When deducting the ongoing costs of a BTL investment from the income generated, the average landlord is left with £16,093 - up 13.3% from £14,206 the previous year.