In the summer I wrote about the resilience of the overall private rental sector (PRS), and correspondingly, landlords' own resilience within that.
That continues to feel like an important message to convey, especially when we are constantly seeing a ‘landlords selling up’ or ‘landlords leaving in their droves’ narrative reflected back at the market.
To the layman looking in, it wouldn’t be surprising at all to hear them talk about a PRS which is struggling right now to contain the level of landlords and properties that are apparently exiting stage left.
Now, of course, part of this narrative stems from landlord research, and when asked if you are considering selling up, or leaving, many may be tempted to say yes.
However, what you say you might do and what you end up doing can be very different, and part of me believes that landlords are also seeking to send a message here to regulators, policy makers, politicians, etc, that what they have been subject to in recent years is less than positive, and is clearly making them consider their future within the sector.
At the same time, however, we also see landlords' development of their portfolios every day, we see their ambitions to add property, to make the most of the homes they already offer, to look at their financing structures, the way they own properties, and we certainly do not believe, or recognise, a narrative that landlords are ‘giving up’ on this sector.
That is important to hear, particularly if you’re an adviser, plus it’s important as a sector to have that ongoing activity reflected back, because it keeps you engaged, it keeps you looking for landlord borrower clients, and it ensures you continue to service those existing ones who are naturally much more likely to retain their place and their ambitions for property investment.
I think as well that our latest Rental Barometer statistics show a clear picture of what the buy-to-let mortgage market ‘norm’ is right now, and again this presents positives and opportunities for advisers and their clients.
For example, average rental yields across England and Wales edged up again, rising to 7.5% compared to 7.2% a year ago. That 0.3% annual increase may not seem dramatic, but it is important particularly when viewed alongside all the noise about landlords leaving.
The strongest yields remain in the North East (9%), North West (8.5%) Yorkshire & Humberside (8.2%), and Wales (8.2%). These regions continue to attract professional landlords due to their combination of affordability, tenant demand, and strong returns. But equally encouraging is the fact that areas such as Wales (+1.0% year-on-year), the South West (+0.9%), and East Anglia (+0.7%) have all delivered some of the biggest annual uplifts.
This resilience is not just about yield. Rental values themselves continue to increase across many regions. Average monthly rents rose by 3.2% in Q3, with the West Midlands and the North East showing annual growth of more than 20%. These are not signals of a sector in retreat; they are signs of tenant demand driving growth, which in turn supports landlords’ ongoing investment strategies.
One of the clearest themes from this quarter’s data is the continued shift towards larger, more professional landlord structures. Limited company borrowing now accounts for 81% of our applications. That’s not a blip; it is a strong direction of travel and highlights how professional landlords are adapting their ownership models to manage both tax and regulatory obligations more effectively. If you’re doing this, you’re unlikely to be leaving the sector any time soon.
Portfolio landlords as an entity are also growing in prominence. Over 61% of applications now come from those with four or more properties, and the share from landlords with 15-plus properties jumped to 23% in Q3 from 16% the quarter before. In other words, existing landlords who take this seriously are growing their portfolios, not heading for the hills.
For advisers, this trend matters because it changes the conversation. These clients are not casual investors dipping in and out of buy-to-let. They are business operators, looking at financing structures, scaling portfolios, and managing compliance costs. Advisers who can support them strategically, not just on the next mortgage but on portfolio planning, will cement long-term relationships and build trust with landlords who are clearly here for the long term.
Taken together - and this is just a small fragment of the data we collect - we have a picture of a sector that continues to adapt and evolve, rather than contract.
Yes, landlords can feel pressure. Yes, regulation is rising. Yes, the Renters’ Rights Bill sets another bar for landlords to get over. But yields are edging upwards, rents continue to grow, demand remains strong, and professional landlords are doubling down on their commitment to the PRS.
For advisers, the message is clear. Ignore the headlines about landlords exiting in droves. Instead, look at the evidence and continue to ensure you are the go-to operator for landlords when it comes to specialist advice.
