The Future of Buy to Let in 2025: Why Property Investors Are Exploring New Alternatives

As we progress through 2025, the landscape of UK property investment continues to evolve — and for many investors, the traditional Buy-to-Let route is no longer the clear-cut option it once was. To help unpack the challenges and opportunities in today’s market, Harry Shaw, Head of Investor Relations at Acorn Property Invest, hosted a live webinar outlining the key trends shaping the Buy-to-Let space and presenting modern, hands-off investment alternatives.

This blog recaps the key insights from that webinar, which you can also watch in full below.

Understanding the Shifting Buy-to-Let Landscape

For decades, Buy-to-Let was seen as a dependable way to generate steady rental income and long-term capital growth. But recent changes have introduced significant complexity and reduced profitability for landlords:

• Tax changes: Mortgage interest relief has been replaced with a flat 20% tax credit, and the Capital Gains Tax allowance has been cut drastically.
• Stamp duty increases: A surcharge on second homes has risen again, with higher fees on properties over £250,000.
• New legislation: Minimum EPC ratings and the Renters Reform Bill (ending no-fault evictions) are adding to compliance requirements.
• Rising mortgage costs: Interest rates remain high, deposits have increased, and mortgage approvals have dropped by more than 50% year-on-year.

Together, these changes have made Buy-to-Let significantly more challenging, especially for small-scale landlords and second homeowners.

A New Way to Invest in UK Property

Recognising the hurdles facing traditional landlords, Acorn Property Invest has developed a range of hands-off property investment products designed for today’s market realities.

Unlike Buy-to-Let, investors don’t purchase physical properties. Instead, funds are placed into fully managed development schemes, offering a more streamlined, low-maintenance approach to property investing.

Key Benefits Include:

• Low entry point: Start investing from just £10,000.
• No hidden fees: No stamp duty, solicitors, or property management costs.
• Tailored returns: Choose between fixed income, profit share, or capital growth.
• Flexible terms: Options range from 1 to 5 years.

Investment Options That Fit Your Goals

Acorn’s platform offers two core types of opportunities:

1. Portfolio Investments

Ideal for those seeking diversification, these products spread funds across several Acorn developments. Qualifying investors can choose between:

• 1, 3, or 5-year terms
• Compound growth or quarterly income

2. Site-Specific Investments

These investments are tied to individual development projects, usually over 2–3 years. Structures vary, with some combining fixed income and profit share.

Real-World Comparison

Let’s compare a typical investment of £50,000. *Note, the returns outlined below are from a previous, closed investment opportunity, past performance is not indicative of future performance. 

• Traditional Buy-to-Let: After five years, estimated net return is around £12,500, once you factor in mortgage costs, tax, and maintenance.
• Acorn 5-Year Investment: At a fixed return of *12.75% per annum (based on a closed product), the total return could reach £31,875 — without any landlord responsibilities.

Market Outlook: A Time of Change and Opportunity

While the rental market still shows strong demand, regulatory and cost pressures continue to squeeze yields. However, falling interest rates and potential planning reforms may offer some relief in the medium term.

For Acorn, these changes could reduce financing costs and improve delivery margins — helping us maintain our commitment to design-led, sustainable housing. One example is our 200-unit regeneration project at the former Bristol Zoo site, part of our active £1 billion+ development pipeline.

Q&A Highlights from the Webinar

Q: Are Shariah-compliant options available?
Yes. We offer both portfolio and site-specific Shariah-compliant products, developed with Amanah Advisors.

Q: Can I earn both income and growth?
Absolutely. You can split your capital across different products or select hybrid structures.

Q: Is compound interest available?
Yes, particularly on our 3- and 5-year portfolio options.

Q: Do you offer commercial property investments?
Yes — particularly via our commercial portfolio.

Final Thoughts

As the fundraising arm of Acorn Property Group, we offer a modern, hassle-free alternative to Buy-to-Let - perfect for investors seeking secure returns without the headaches of tenant management, repairs, or tax complications.

Acorn Property Group is an established UK housebuilder with over 30 years of experience and a strong reputation for delivering high-quality, design-led developments across the South West and beyond. With a proven track record and a pipeline exceeding £1 billion in value, we continue to create homes people love, in places they want to live.

Register on our platform to explore current investment opportunities and request our Buy to Let comparison guide.

YOUR CAPITAL IS AT RISK IF YOU INVEST

Investors should be aware that market conditions can change, and there is no guarantee that this demand will remain high or that investments will yield returns. Investment opportunities available via Acorn Property Invest are exclusively targeted at exempt investors who are experienced, knowledgeable and sophisticated enough to sufficiently understand the risks involved, and who are able to make their own decisions about the suitability of those investment opportunities. All investors should seek independent professional investment and tax advice before deciding to invest. Any historic performance of investment opportunities is NOT a guide or guarantee of future performance and any projections of future performance are not guaranteed. All investment opportunities available via Acorn Property Invest are NOT regulated by the Financial Conduct Authority (FCA) and you will NOT have access to the Financial Services Compensation Scheme (FSCS) and may not have access to the Financial Ombudsman Service (FOS).