Let’s cut to the chase: the UK’s buy-to-let sector is holding its ground as a solid investment, even in a climate that’s thrown more than its fair share of curveballs. The latest numbers from Paragon Bank (collected by Pegasus Insight, for those keeping score) reveal that a hefty 87% of landlords reported profits in Q2 2025. That’s nearly back to the high-water mark of 88% from late 2020. Losses? Only 5% of landlords fell into the red, with another 8% breaking even—a marked improvement from 2023’s tougher conditions, when profit-makers dropped to 77%.
This resurgence speaks volumes about the underlying resilience of the market. The fundamentals are still working in landlords’ favour.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, highlighted the sector’s strong performance, noting yields are holding steady near multi-year highs. In practical terms, well-managed rental properties are generating consistent, attractive returns.
Key drivers behind these results:
Of course, challenges like arrears or property maintenance issues still exist. But the data’s clear: even with these hurdles, well-managed portfolios are reliably profitable—almost 80% of landlords in this group are making it work.
For investors—whether UK-based or international—these figures highlight genuine opportunity. Nine out of ten landlords are turning a profit, and regions like London, Manchester, Birmingham, and rising northern markets continue to offer robust returns and capital growth potential.
You don’t have to go it alone, either. Partnering with reputable property management agencies, focusing on quality tenant selection, and investing in strategic upgrades can help safeguard and maximise returns.
Key Takeaways
In summary, buy-to-let continues to stand out as a reliable and profitable asset class in the UK. With strong demand, high occupancy, and competitive yields, it remains an attractive route for investors seeking steady income and long-term capital appreciation.