Financing buy-to-let property in London

If you are considering purchasing buy-to-let property in London, the key factors that will affect the returns on your investment include current property prices, areas where growth is predicted, achievable rental yields, tax obligations and interest rates.

Challenges in the current market

The average London house price decreased by 3.3% between February 2025 and February 2026. For investors, this means that lower house prices are available compared to a year previous but future growth forecasts need to be considered.

Rental yields vary greatly across London depending on property type and location, with areas such as Barking and Dagenham and East London delivering higher rental yields compared to areas where property prices are higher.

The London housing market has been significantly impacted by the abolishment of the non-dom tax regime, with a large number of prime and super-prime properties going onto the market due to high-net-worth individuals exiting.

The increase in luxury property supply provides an opportunity for investors to move into the prime and super-prime buy-to-let property market. However, recent tax changes such as the second home surcharge introduced in 2024 and the upcoming property income tax rates increase in April 2027 will be key factors in analysing any potential London property investments.

How Nedbank Private Wealth differs from mainstream lenders

Property investors looking to finance London property purchases can benefit from flexible buy-to-let lending solutions with Nedbank Private Wealth. We assess borrowing criteria on your wealth as a whole, rather than the rigid affordability criteria many mainstream lenders use.

We provide bespoke terms based on our clients’ individual circumstances, which can include securing finance against investments or UK property, for example. In many cases, securing finance for a buy-to-let property can be processed quickly, so that you do not miss out on an opportunity.

Financing options offered

We offer a range of lending services, including:

• Interest-only loans – You can lower monthly payments by taking out an interest-only payment arrangement and use investments or other assets to repay the capital at the end of the term.
• Portfolio lending – It is often possible for investors with property portfolios to consolidate buy-to-let property loans under one mortgage to simplify management.
• Foreign income consideration – When we assess eligibility, we can include foreign income in the affordability calculations.

Support for complex ownership structures

Many of the clients we work with have complex ownership structures such as trusts, offshore entities or joint investments. We provide support for purchasing buy-to-let properties under these types of structures, so that property investments can be aligned to tax-efficient ownership models.

Added value from a relationship-led approach

At Nedbank Private Wealth, we apply a relationship-led approach to support our clients across our range of services. Some of the benefits we offer to property investors include providing ongoing advice and risk management guidance. We also have property sourcing connections to help clients to find suitable properties that are matched to their property goals.

Contact our lending specialists to discuss flexible buy-to-let lending solutions in more detail.