Buy-to-let
Buy-to-let is buying a home to rent it out. These purchases are real sales and appear in sold price data alongside sales to owner-occupiers.
Buy-to-let means buying a property to rent it to tenants rather than to live in it. The buyer, the landlord, earns rent and may also gain or lose as the home's value changes.
Buy-to-let purchases are usually made with a buy-to-let mortgage, with cash, or through a company. They make up part of the sales in most areas of England and Wales.
Buy-to-let in sold price data
Buy-to-let sales are recorded by HM Land Registry like any other sale. Where a buy-to-let can be identified by its mortgage, the sale is classed as an additional price paid entry, known as category B. Category B also includes repossessions and sales to companies, and the data does not say which is which.
House Price Monitor counts these sales in its figures, because they are real sales at real prices. Our guide to what the Land Registry price data includes explains the two categories.
Tax on buying a second home
A buyer who already owns a home usually pays a higher rate of tax on a buy-to-let purchase. In England, Stamp Duty Land Tax has a surcharge of 5 percentage points on top of the standard rates for additional homes.
In Wales, Land Transaction Tax has its own higher residential rates for additional homes, set by the Welsh Government.
Renting out a home
In England, assured shorthold tenancies ended on 1 May 2026 under the Renters' Rights Act 2025. Private tenancies are now periodic, with no fixed end date, and landlords can no longer end a tenancy without giving a reason.
Wales has its own system. Under the Renting Homes (Wales) Act 2016, most private tenants have had a standard occupation contract since 1 December 2022.
A landlord in England or Wales must have a valid Energy Performance Certificate to let a home, and the home must usually be rated E or better.
| Meaning | Buying a home to rent out |
| In Price Paid Data | Category B where a buy-to-let mortgage identifies it |
| Extra tax in England | 5% surcharge on Stamp Duty Land Tax |
| Extra tax in Wales | Higher residential rates of Land Transaction Tax |
| Tenancies in England | Periodic since 1 May 2026 |
Related terms
Additional price paid data · Price Paid Data · Stamp Duty Land Tax · Land Transaction Tax · Energy Performance Certificate · Median price