When most people decide to move, they assume there are only two options: sell their current home or stay where they are.
But if your property isn’t attracting the right buyer, your sale has fallen through, or you’re reluctant to accept an offer below what you believe it’s worth, there may be another route that allows you to move forward without giving up your home.
It’s called let-to-buy, and for the right circumstances, it can be an incredibly effective solution.
What is let-to-buy?
Put simply, let-to-buy means keeping your current home and renting it to tenants while purchasing your next property.
Rather than waiting for the perfect buyer to come along, your existing home becomes an investment, generating rental income while giving you the freedom to move when you’re ready.
For many homeowners, it’s a way of breaking the deadlock when a sale isn’t progressing.
Why are more homeowners considering it?
The property market naturally moves in cycles.
There are times when demand is exceptionally strong and homes sell quickly. Equally, there are periods when buyers become more cautious, properties remain on the market for longer and sellers find themselves wondering whether to reduce the asking price.
If you’re in that position, it can feel as though your only option is to keep lowering the price.
In reality, letting your property may allow you to avoid making a decision you’ll later regret.
Instead of selling at a time when values may be under pressure, you retain ownership of the asset while generating an income from it. If market conditions improve in the future, you still have the option of selling later.
For many homeowners, that flexibility is worth far more than accepting an offer they don’t feel reflects the true value of their home.
Could it work for you?
Let-to-buy isn’t just for professional landlords.
It can be worth exploring if you:
- Have found your next home but haven’t secured a buyer.
- Need to relocate for work or family reasons.
- Want to move into a larger property without waiting indefinitely for your current home to sell.
- Believe your home is worth more than buyers are currently prepared to pay.
- Like the idea of retaining a long-term property investment.
Every situation is different, which is why it’s important to understand both the opportunities and the financial implications before making a decision.
The advantages of let-to-buy
You keep a valuable asset
Property has historically been a long-term investment.
If you believe your home’s value could improve over time, retaining ownership allows you to benefit from any future capital growth rather than selling during a quieter market.
Rental income helps support the property
In many cases, the monthly rent can contribute towards—or even cover—the mortgage and ongoing running costs of the property.
While every home is different, demand for quality rental properties across Guildford remains strong, particularly for well-presented family homes in popular school catchments.
You can move on with your plans
Perhaps the biggest advantage is that you’re no longer relying on finding the right buyer before taking your next step.
Whether you’ve already found your next home or simply don’t want to put your plans on hold indefinitely, letting your current property can provide another route forward.
What costs should you consider?
Like any property decision, let-to-buy isn’t without additional costs, and it’s important to understand these before proceeding.
Income Tax
Rental income is taxable, but many of the costs associated with letting a property can usually be offset against that income before tax is calculated.
These may include agency fees, safety certificate renewals, maintenance and repairs, insurance and other allowable expenses incurred while the property is let. As everyone’s circumstances are different, we always recommend seeking advice from an accountant or tax adviser before proceeding.
Stamp Duty
When purchasing another property while retaining ownership of your current home, you’ll usually pay the higher rate of Stamp Duty that applies to additional properties.
Depending on your circumstances, some or all of this additional Stamp Duty may be recoverable if you later sell your original home within the relevant time limits. Your solicitor or tax adviser will be able to explain how the rules apply to your situation.
Mortgage and finance
Before renting out your home, you’ll need to speak to your mortgage lender or broker.
Some homeowners are granted Consent to Let, allowing them to rent their property while remaining on their existing mortgage. Others may need to switch to a buy-to-let mortgage. The right solution will depend on your lender, your financial circumstances and your longer-term plans.
Letting and management fees
Many landlords choose a Managed service, where the letting agent handles marketing, professional photography, tenant referencing, compliance, rent collection, inspections and day-to-day management.
While there is a cost involved, many landlords find it offers valuable peace of mind, particularly if they have never rented a property before. Agency fees, along with many other costs associated with running a rental property, are generally allowable expenses for tax purposes.
Maintenance and compliance
As a landlord you’ll have legal responsibilities, including maintaining the property, renewing the necessary safety certificates and ensuring it complies with current legislation.
Many of these ongoing costs are also allowable expenses for tax purposes, and an experienced managing agent can help ensure everything is kept up to date while dealing with maintenance issues on your behalf.
What about the Renters' Rights Bill?
The proposed Renters’ Rights Bill has understandably generated plenty of headlines, leading some homeowners to question whether becoming a landlord is still worthwhile.
While the legislation introduces important changes that landlords should be aware of, it hasn’t reduced the need for quality rental homes. Across Guildford, tenant demand remains strong and well-presented family properties continue to let well.
The key is understanding your responsibilities from the outset and working with a managing agent who can guide you through the legislation as it evolves.
A real-life example
Imagine a family living in Burpham.
Their three-bedroom home goes on the market for £750,000, but after several months and a handful of viewings, the offers remain well below what they’re prepared to accept.
Meanwhile, they’ve found the house they’d hoped to buy.
Rather than reducing their asking price by £25,000 or more, they explore the possibility of letting their current home instead.
A rental appraisal suggests the property could achieve around £3,500 per calendar month, comfortably covering the mortgage while providing additional income towards the property’s ongoing costs.
Instead of selling at a figure they weren’t happy with, they move into their new home, retain ownership of a valuable asset and continue benefiting from any future growth in its value.
Of course, every situation is different and the numbers won’t work for everyone, but it’s a good example of how letting can sometimes provide a practical alternative when a sale has stalled.
Is let-to-buy right for you?
There’s no single answer.
For some homeowners, selling remains the right decision.
For others, particularly those struggling to find the right buyer or wanting greater flexibility, letting could provide an opportunity they simply hadn’t considered.
The first step is understanding what your home could realistically achieve on the rental market and whether the numbers stack up for your circumstances.
We'd be happy to help
If your home has been on the market for longer than expected, or you’re simply curious whether letting could be an alternative to selling, we’d be delighted to provide a free, no-obligation Let-to-Buy Review.
We’ll discuss:
- Your property’s likely rental value.
- Current tenant demand in your area.
- The costs involved in becoming a landlord.
- Whether the numbers work for your circumstances.
- How the process would work from start to finish.
Whether you ultimately decide to sell or let, our aim is simply to help you understand all of the options available, allowing you to make the right decision with confidence.