In conversations with our mortgage clients, one question continues to dominate: “Is now a good time for property investors to buy?” My answer remains a firm yes. But for brokers, the more important follow-up is: “How can you support these investors through the current landscape?”
The rental market continues to contract. According to data from TwentyEA , the number of rental homes available across the UK has dropped 18% year-on-year and sits 23% below pre-pandemic levels. This is occurring as more landlords are choosing to exit the sector — 15.6% of all new listings in Q1 2025 were previously rented properties, up from 9.8% a year earlier.
Yet, seasoned investors are not backing off — they're stepping in. This presents an important opportunity for brokers to engage clients who are actively looking to expand their portfolios.
Where the investment opportunity lies
As more properties come to market following landlord exits, experienced portfolio investors are sensing value — particularly in second-hand or older stock where the 'new build premium' can be avoided. In many cases, investors are planning light refurbishments to improve yield potential and tenant retention. Brokers should be aware of this strategy to recommend the most flexible finance options — especially those that cater to light refurbishment or second charge loans.
While many focus on London, regional differences are key. Investors are increasingly looking North, where yields tend to be more favourable and local authority hurdles less cumbersome. For brokers, this shift means understanding regional market conditions and lender preferences is more critical than ever.
Navigating regulatory challenges
One looming consideration is the upcoming energy efficiency regulations. Properties requiring upgrades to meet an EPC rating of C or higher can carry steep costs — especially in lower-value areas. A £15,000 retrofit on a £100,000 property, for example, may be difficult to justify.
This is where brokers can add value: guiding clients toward lending products that factor in refurbishment costs or even financing solutions bundled with green incentives.
The pension angle: Another opening for property finance
Growing uncertainty around pension taxation could also fuel renewed interest in property investment. With potential government changes around tax treatment and drawdown limits — possibly capping tax-free lump sums at £100,000 — many high-net-worth clients are reconsidering how best to deploy their retirement wealth.
This is fertile ground for brokers who can educate and advise on how to structure investment properties using pension drawdowns — especially where bridging finance or buy-to-let mortgages may come into play.
Lender landscape: Competitive and broker-friendly
Despite the challenges, availability of finance remains healthy for property investors. Buy-to-let and bridging lenders are competing vigorously, keeping rates and criteria attractive. With arrears still low in the sector, the risk profile remains reassuring — another strong message brokers can pass on to clients.
Yes, the market is more complex than it was a few years ago. But complexity breeds opportunity for proactive mortgage brokers. Those who position themselves as knowledgeable, adaptable advisers are not just facilitating transactions - they’re building long-term, loyal investor relationships.
