For much of the past decade, discussions around buy-to-let have often focused on one simple question: are landlords buying or are they selling?
While that remains an important measure of market activity, I increasingly think it misses what is really happening within the sector. The latest results from our landlord survey, for example, suggest today's landlords are making decisions very differently from previous generations of property investors.
Rather than focusing solely on growing portfolio size, many are becoming far more strategic about how they manage, finance and optimise the assets they already own.
In many respects, the modern buy-to-let landlord is becoming less of a property collector and more of a portfolio manager, and that shift should be of considerable interest to advisers because it may change both the nature of client conversations and the type of support landlords increasingly require.
Growth remains important, but only when the numbers work
One of the most interesting findings from our latest survey was that while just over 50% of landlords said they do not currently plan to purchase additional properties over the next 12 months, more than a third (35.3%) still intend to add to their portfolios. At the same time, selling intentions remain relatively balanced, suggesting landlords are not exiting the sector in significant numbers but are instead making more selective decisions about where capital should be deployed.
This is an important distinction because the private rented sector continues to benefit from strong underlying demand, with industry research regularly highlighting ongoing supply shortages across many parts of the country, coupled with significant tenant demand. Our own survey results suggest landlords recognise this. Despite continued political, regulatory and economic uncertainty, they remain engaged with the market and continue to see opportunities.
However, they appear increasingly unwilling to pursue expansion simply for the sake of growth. New acquisitions need to make commercial sense, existing properties need to justify their place within a portfolio and financing costs, rental yields and long-term profitability are all playing a much greater role in decision-making.
Yield and profitability are driving decisions
The survey results provide further evidence of this increasingly commercial mindset. Many landlords continue to generate strong returns, with 27.1% reporting gross yields between 4% and 6%, 21.8% achieving between 6% and 8%, and 15.8% generating yields of 10% or more. Alongside this, more than three-quarters of landlords indicate they are planning some form of rent increase over the next 12 months.
Taken together, these findings point towards a landlord community that remains firmly focused on profitability and cash flow. In a market where taxation, regulation and operating costs continue to rise, landlords are looking at the performance of individual assets rather than the size of the overall portfolio.
For advisers, this creates an opportunity to move discussions beyond the mortgage itself and towards broader portfolio objectives. Questions around refinancing, releasing equity, reducing borrowing costs, restructuring ownership and improving portfolio efficiency are becoming just as important as sourcing the next loan.
Financing remains central to portfolio strategy
Another clear finding from the survey is the importance landlords continue to place on financing certainty. Despite increased discussion around tracker products over recent months, 87.2% of respondents said they would choose a two, three or five-year fixed rate as their next mortgage, with almost half opting for a five-year fix. This suggests landlords are prioritising predictability and stability when managing their finances, particularly against a backdrop of continued economic and political uncertainty.
It is also notable many landlords remain highly active in the market despite recent volatility. Almost half of respondents said they had either completed a buy-to-let mortgage in the previous month or were currently progressing one. That activity demonstrates landlords are still prepared to act when opportunities arise, but they are increasingly focused on ensuring borrowing arrangements support wider portfolio goals.
For advisers, this reinforces the importance of proactive client engagement. Many landlords may have secured finance during periods when rates were considerably higher than today, while others may be sitting on assets with significant levels of untapped equity. Helping clients understand how their financing arrangements fit within their broader investment strategy is likely to become an increasingly important part of the advisory process.
The adviser role continues to evolve
Perhaps the strongest message from the survey is landlords continue to value professional advice. More than 82% of respondents used an adviser from the outset when arranging their most recent mortgage, while almost 10% initially attempted to arrange finance themselves before eventually seeking professional support. This perhaps proves that moving a mortgage through to completion is no easy feat for those doing it themselves, or even attempting to.
This suggests landlords increasingly recognise successful portfolio management requires more than simply finding a mortgage product. The most effective advisers can be those who understand the wider objectives behind a borrowing requirement and help clients make informed decisions about growth, refinancing, portfolio structure and long-term planning. As the buy-to-let market continues to mature, I believe this trend will only strengthen.
The landlords who thrive over the coming years are unlikely to be those who simply acquire the most properties. More likely, they will be those who make the best decisions about the assets they already own, the opportunities they choose to pursue and the way their portfolios are financed. For advisers, that means the future opportunity may lie less in facilitating transactions and more in helping clients build stronger, more resilient property businesses.
