The first results from our revamped Landbay landlord survey – available to view here - show a sector that is fully engaged with the market and clear about what it needs to remain profitable. Landlords are aware of the policy, tax and regulatory changes ahead, but they are not stepping back. Instead, they are reviewing portfolios, assessing funding options and looking for opportunities to strengthen returns.
We carried out the survey at the end of December and the start of January, immediately following the Autumn Budget. Around 40% of landlords told us they felt negative about the outlook for their own buy-to-let businesses. Given the timing, that is understandable. What matters more is that the majority were either neutral or positive, and the actions they’re considering point to planning rather than hesitation.
Landlords are reviewing, not retreating
Almost half of landlords said they do not currently plan to buy or sell over the next 12 months, while a significant number said they are still reviewing their options. That should not be mistaken for inactivity. It shows landlords taking stock of their portfolios, rental income and borrowing before deciding their next move.
Where landlords do expect to act, many are considering changes to ownership structure, future purchases and how best to fund them. Planned rent increases are generally modest, with most landlords expecting rises in line with inflation or slightly above. That reflects careful management and an understanding of what is required to run sustainable portfolios.
Stronger rents of course supports stronger yields. When combined with a more competitive mortgage market which could deliver lower mortgage payments, this creates scope to improve overall profitability.
Legacy mortgage pricing remains a drag on performance
One of the clearest findings from our survey was how many landlords are still carrying higher-rate buy-to-let mortgages. More than a third told us the rate on their most recent buy-to-let mortgage was above 5%. These were deals secured during the peak of the rate cycle, a couple of years ago – in marked contrast to those who were able to secure rates four/five years ago.
However, all landlords are clearly looking ahead, particularly around what is achievable next. Five-year fixed rates were the most popular option when respondents were asked what they would choose at their next remortgage. That preference points to long-term planning and a desire for certainty.
Taken together, this highlights a major opportunity. Many landlords have equity tied up in existing properties and are now well-placed to review borrowing costs, release capital where appropriate and reinvest into portfolios.
What our Premier range shows is possible
This is where current pricing really matters. The market has moved more quickly than perhaps many landlords realise.
Our Premier range demonstrates just how competitive pricing has become for standard professional landlords. We’ve just launched new two-year fixed rate products starting from 2.74%, available up to 75% LTV, plus cut rates across our existing two-year mortgages.
For landlords coming off 5% or 6% deals, the difference here could be incredibly significant. On a typical £200,000 interest-only mortgage, moving from those higher rates to current Premier pricing can reduce monthly payments by hundreds of pounds. Over the life of a two or five-year deal, that can translate into savings of many thousands of pounds.
Those savings matter. They can help absorb higher running costs, fund improvements, support Renters Rights Act requirements or provide additional headroom to add to portfolios. This is not about chasing the lowest headline rate. It is about understanding how far pricing has shifted and what that means for cash flow and long-term plans.
Remortgaging, equity and portfolio growth
For many landlords, remortgaging is not just about lowering costs. It is also about unlocking equity built up over time. In a market where landlords are thinking carefully about structure and future investment, access to competitive remortgage pricing is key. Lower rates improve affordability and can make equity release more viable, allowing landlords to reinvest into new properties or improve existing ones without stretching cash flow. This is where you as advisers can add real value.
Advice remains central in a product transfer market
There is further good news from our survey in terms of how advisers continue to be highly valued. Around three-quarters of landlords told us they would use the same adviser again for their next mortgage. That is a strong endorsement of the advice sector.
At the same time, product transfers are increasing across the market. While they offer speed and simplicity, there is a risk that some landlords opt to go it alone and choose a PT from their existing lender without fully reviewing their wider options.
That is why we firmly believe adviser-led product transfers matter. They allow landlords to refinance efficiently while still having the adviser consider the broader market, including whether a full remortgage to a new lender, securing equity or a longer-term fix may be more suitable. Not to mention be advised across more holistic financial requirements.
At Landbay, we remain firmly intermediary-only. Our Premier range and our adviser-led product transfer proposition are designed to support advisers in having those conversations, helping landlord clients make informed decisions in a more competitive rate environment.
A market focused on opportunity
The picture that emerges from our survey is a generally positive one despite some concerns and reservations about Government intervention in the immediate aftermath of the Budget announcement.
A few months on from that the mood may have lightened. And as we know landlords are pragmatists and are concentrate on the practicalities and what lies ahead. They understand what is required to remain profitable. They are engaged, reviewing finance and looking for ways to make their portfolios work harder.
For advisers, this is a constructive environment. Competitive pricing, particularly through our Premier range, combined with active remortgage and product transfer demand, creates clear opportunities to add value for landlord clients. Helping landlords understand what is now achievable on rates and monthly payments will be central to that.
