It may seem counterintuitive—owning a property you rent out while continuing to rent yourself—but for some, it could be a clever strategy to get a foot on the ladder.
Why Consider Buy-to-Let First?
In many parts of the UK, especially in large cities like London, Bristol, or Edinburgh, buying a home to live in can feel financially out of reach. Buy-to-let offers an alternative entry point. By purchasing in a more affordable area with strong rental demand, first-time buyers can start building equity while generating rental income. This income could contribute toward future investments—or even the deposit for a future residential home.
Owning an investment property can also be a hedge against inflation and a potential source of long-term capital growth. For those not ready to settle down or who expect to move frequently for work, it offers flexibility: you remain mobile while your money works for you.
What Are the Drawbacks?
That said, this route isn't for everyone. Buy-to-let mortgages typically require a larger deposit—often 20–25%—and the lending criteria can be stricter, especially for first-time buyers without a property track record. You’ll also need to prove the rental income will comfortably cover mortgage payments (usually at 125–145% of the loan amount).
There’s also the reality of being a landlord. Maintenance, void periods, tenant issues, and new regulations can all cut into your returns. And while you’re building equity in your investment property, you’ll likely still be paying rent yourself—an arrangement that doesn’t suit everyone.
Another factor to consider is how a buy-to-let mortgage might impact your ability to borrow in the future. Some lenders may reduce your affordability for a residential mortgage, so it’s vital to speak to a mortgage broker early on.
Is It Right for You?
Buying a buy-to-let property before your own home can be a smart, strategic move—but it’s not without risks. If you’re financially prepared, investment-smart, and realistic about the responsibilities of being a landlord, it could offer a valuable first step onto the property ladder.
Before jumping in, do your research, speak to independent advisors, and weigh up both your short-term flexibility and long-term goals.
Sometimes the path to homeownership isn’t linear—but it can still lead you where you want to go.
