Buy-to-Let Properties

Buy-to-let mortgages are often interest-only, which means the monthly payments cover only the interest, so you will need a plan to repay the capital at the end of the term, whether by selling the property, using savings, or refinancing. Because lenders treat these loans as higher risk, the deposit is larger than for a home you live in, with at least 30% generally required under Central Bank rules. A larger deposit, a good credit history, and clear proof of affordability will all help you secure better terms.

The Residential Tenancies (Miscellaneous Provisions) Act 2026 made significant changes that took effect for new tenancies created on or after 1 March 2026. A national rent control system has replaced the old Rent Pressure Zones, with annual rent increases linked to the Consumer Price Index and capped at 2%, applied on a pro rata basis. Certain new apartments are treated differently: where a development commenced and was completed on or after 10 June 2025 and has the required building control certification, increases are linked to the Consumer Price Index without the 2% cap. New tenancies also carry stronger security of tenure through a rolling six-year structure, known as a Tenancy of Minimum Duration, during which a landlord’s ability to end the tenancy is more limited.

Yes. The 2026 Act distinguishes between small landlords, defined as those with three or fewer tenancies, and larger landlords. Small landlords keep more flexibility. During a six-year tenancy they may, for example, be able to end it where financial hardship requires a sale, or where the landlord or a close family member needs to live in the property, and at the end of the six years they may rely on grounds such as sale, occupation, substantial refurbishment, or change of use. Larger landlords face tighter restrictions and generally cannot end a tenancy on those grounds. The rules also allow the rent to be reset to the open market rate in certain situations, such as at the end of each six-year tenancy, or where a previous tenant left voluntarily or breached their obligations.

Careful due diligence is essential. The new six-year tenancy model applies to tenancies created on or after 1 March 2026 and does not apply in the same way to tenancies already in place before that date, so the rules governing a sitting tenant can differ depending on when the tenancy began. Before you commit, you should establish the status of any existing tenancy, the rent currently payable, and how easily you would be able to recover possession in the future. We can investigate these points as part of the conveyancing process and explain what they mean for your plans.

Landlords have a number of legal duties. You must register the tenancy with the Residential Tenancies Board each year and keep tenants informed of any changes, such as a rent review, which is now limited under the national rent control system introduced in 2026. The property must meet the official minimum standards, and you must provide a rent book and a Building Energy Rating and keep the structure and interior in good repair. 

Several taxes can apply. Stamp duty is payable on the purchase at the standard residential rates. Rental income is liable to income tax at your marginal rate, although allowable expenses, including mortgage interest on a residential letting, can be deducted. You will also pay Local Property Tax as the owner, and capital gains tax may arise when you eventually sell.

Location is key. Look for a property in a strong rental area, ideally close to transport, employment, schools, and other amenities, and check with local letting agents for realistic rents. Be cautious with properties that need significant work, and always make any offer subject to a survey by a qualified surveyor, who can identify issues such as damp, faulty wiring, or structural problems. If the property is a protected structure, bear in mind that there may be restrictions on what you can change.