Can you make BTL work in 2025?

[epal]

We are first time buyers. Wanting to buy a place but London prices are insane and our rent is not awful.

We have about 100k we could put into a BTL. Thinking somewhere cheaper outside of the South East as prices are pretty flat here.

Can you make it work in 2025? My parents have a BTL and it pays very well for them but they did buy 20 years ago…

I really would not invest in a BTL now. House prices are falling if anything and yields have reduced, especially in the South. The government are also bringing in the renters rights bill which will protect tenant's rights better.
Invest in gold or something else or take independent financial advice.

Sorry, I shouldn't say 'invest' in gold because it's not considered an investment but an asset that preserves wealth. Also, I am not giving financial advice!

We have a BTL but bought back in 2000 maybe get a maisonette or something, I think it's fairly safe if you're looking at longer term, I'm not financial advisor though!

In a word - no. Like scores of landlords, I am am selling up - it’s just not viable any more.
In your position I’d put £20k each in an ISA - before 5 April - and then another £20k each into an ISA after 6 April. That’s £80k invested tax (and hassle) free. I’d put the remaining £80k in premium bonds until I could move it into an ISA April 2026.
Good luck with it all.

No.
What would happen if your LL sold or renovated and doubled your rent? Or you have a child and want to buy somewhere and need that £100k again?
You would then need to evict your tenant from their home.

No. Leave Landlording to professionals who completely understand the law and can absorb the losses and voids that can occur.

BTL is a completely different investment proposition now compared with when your parents bought in 2000. There was mortgage relief available, fewer regulatory requirements, lower stamp duty, better mortgage rates for landlords (hence a strong BTL market) and strong economic environment meaning upward house prices in general.
Do you think the property market is strong and getting stronger?
Are you looking for a general financial investment or property investment?
If you are looking for a financial investment then other investments are likely to be more profitable than BTL; and you need to consider CGT and income tax - you're better to put £20,000 cash in this year and next year's cash ISA, tax free.
Many posters have said the days of buying second properties and making easy gains are over.