Is Buy-to-Let Still Worth It in 2026?

Buy-to-let is no longer the easy money investment it was once seen as. But does that mean it is no longer worth it?

Higher mortgage costs, changes to tax relief, increased stamp duty and new landlord regulations have all changed the numbers.

So, if you are a landlord or considering investing in a buy-to-let property in Nottingham, the real question is no longer simply:

“Will the property make me money?”

It is:

“Does this property still work for me?”

Because in 2026, a good buy-to-let investment is less about following a formula and more about getting the right property, in the right location, with the right financial plan.

Over the last decade, landlords have faced several major changes that have made buy-to-let more expensive and more complex.

Higher Stamp Duty on Buy-to-Let Properties

Buying an additional property now comes with a higher Stamp Duty Land Tax bill.

Since April 2025, buyers of additional properties in England have generally faced a 5% surcharge on top of the standard SDLT rates.

That means your upfront costs can be significantly higher before you have even received your first month's rent.

For investors, this makes choosing the right property even more important.

A poor investment can become expensive very quickly when you factor in stamp duty, legal fees, mortgage costs and the cost of getting a property ready to let.

Another major change is the way mortgage interest is treated for tax purposes.

Individual landlords can no longer deduct their mortgage interest in the same way when calculating taxable rental profits. Instead, relief is generally restricted to a basic-rate tax reduction.

This has had the biggest impact on higher and additional-rate taxpayers.

In simple terms, two landlords earning the same rental income could have very different after-tax profits depending on their wider financial circumstances and ownership structure.

This is why gross rental yield is only part of the story.

The property might look profitable on paper but deliver a very different return once mortgage costs, tax, maintenance, insurance and other expenses are taken into account.

The Renters' Rights Act is also reshaping the private rental sector in England.

The first phase of reforms came into effect on 1 May 2026, including the end of Section 21 no-fault evictions, a new tenancy system and changes to how rent increases and rental bidding work.

Further reforms, including the Private Rented Sector Database, are planned for later phases, while other measures have later implementation dates.

The direction of travel is clear:

Being a landlord now requires more planning, compliance and professional management than it did several years ago.

For good landlords, that does not necessarily have to be a bad thing.

But it does mean that buying a property and simply collecting rent is no longer a realistic approach.

For the right investor, yes, buy-to-let can still be worth it in Nottingham.

But the strongest investments are no longer necessarily the ones with the cheapest purchase price or the highest advertised rent.

The property needs to make sense financially, strategically and over the long term.

Nottingham continues to have a large and diverse rental market, supported by its universities, employment base and transport links.

Demand comes from several different groups, including:

• Students
• Young professionals
• Families
• Healthcare workers
• Commuters

That diversity can give landlords more flexibility than a market heavily reliant on one type of tenant.

As of June 2026, the average private rent in Nottingham was £1,009 per month, according to the Office for National Statistics.

That was up 2.7% over the previous 12 months.

Nottingham's average rent was also above the East Midlands average of £918 per month, while remaining below the UK average of £1,388 per month.

At the same time, the average house price in Nottingham was £191,000 in May 2026, according to provisional ONS data.

Of course, averages only tell part of the story.

Different parts of Nottingham can perform very differently depending on the property type and the tenant you are targeting.

A cheap property is not always a good investment.
Some areas may offer a lower purchase price but weaker rental demand. Others may cost more but attract reliable tenants and experience fewer void periods.
Landlords in Nottingham often look at areas based on their target market.
For example:

Students may prioritise access to Nottingham Trent University or the University of Nottingham. So areas such as Lenton and Beeston are ideal choices for them.
Professionals may value access to the city centre, major employers and transport links.
Families may place greater importance on space, schools and local amenities. 
The key is to choose the property based on your intended tenant, rather than buying first and deciding who you want to attract afterwards.

Stress-test the numbers.

If the investment only works when everything goes perfectly, it may not be a strong investment.

Who is your ideal tenant?

The location, layout and condition of the property should suit a clear target market.

What is your long-term plan?

Are you looking for income now?

Long-term growth?

A future retirement income?

Or a combination of all three?

Your answer could completely change the type of property you should buy.

At Comfort Estates, we understand the Nottingham property market and can provide local insight to help you make a more informed decision.

Get in touch with our team to discuss your next move.