UK landlords remain cautious but optimistic about their portfolios as they navigate ongoing regulatory and tax pressures, research from Landbay reveals.
Key changes include new responsibilities under the Renters’ Rights Act and a 2% rise in property income tax due in 2027.
Almost half of landlords surveyed said they do not plan to buy or sell property in the next 12 months, while a third are considering action and others are still reviewing their options. When asked whether the Autumn Budget would influence their plans, responses were split evenly, with 44% saying it would and 12% indicating it had no impact.
Among those planning to act, many are reviewing ownership structures, potentially moving properties held personally into limited company vehicles.
FINANCIAL OPTIONS
Others are assessing purchase plans or modest rent increases, generally in line with inflation, reflecting uncertainty around future costs and compliance.
Mortgage pricing is emerging as a key consideration. Over a third of landlords said their most recent buy-to-let deals carried rates above 5%, reflecting borrowing secured at the peak of the rate cycle.
In contrast, 5-year fixed rates are the most popular choice for future remortgaging, highlighting demand for stability and long-term certainty.
Landbay said the current pricing environment presents a clear opportunity for landlords to review their finance.
Remortgaging now could save clients thousands of pounds.
Remortgaging now could save thousands of pounds while mitigating rising costs during the year ahead. The lender urged brokers and advisers to highlight available products and guide landlords through remortgage options.
The research also highlighted the value landlords place on advice, with around three-quarters saying they would use the same mortgage adviser again for their next transaction.
ACTIVELY ENGAGED
Rob Stanton (main picture, inset), sales and distribution director at Landbay, says “Landlords are incredibly realistic about the current pressures in the sector, particularly around tax and regulation, but also that they are actively engaged with the market, and looking for ways to improve the performance of their portfolios.
“Many plan to add to portfolios and shift ownership structure.”
“Landlords were not enamoured of the Budget – that is obvious – but they are taking steps to mitigate against measures which may increase their costs, and many plan to add to portfolios, shift ownership structure, and raise rents, in order to ensure they remain profitable.
“One of the key takeaways however is just how many landlords are carrying higher-rate mortgages arranged when pricing was less favourable.
“The good news here is that over the past six months in particular, pricing has shifted considerably, and advisers are likely to be able to secure some considerable savings for those borrowers coming up to remortgage.”
