While landlords are holding steady on new property purchases, many are now turning their attention to remortgaging instead.
The latest data from Twenty7tec reveals that buy-to-let purchase searches are down 13.67% year-on-year, while remortgage searches have risen by 6.05%. After a period of strong activity over the past five years - including a peak in September 2022, when buy-to-let made up 21% of all mortgage products - landlords appear to be focusing on protecting existing portfolios rather than expanding them.
Buy-to-let purchases now make up 33.1% of all landlord searches - meaning two-thirds of current activity relates to remortgaging.
Across the broader mortgage market, Twenty7tec reported a record 28,835 products live at the end of October - the highest ever recorded - signalling confidence among lenders even as purchase demand slows ahead of the Autumn Budget.
For first-time buyers, searches have fallen to their weakest point this year (297,387), underlining a cautious sentiment across the board as borrowers await economic clarity.
Landlords will also be watching closely for any movement on property taxation, stamp duty thresholds and rental market incentives in this month's Budget.
Back in 2024, the Autumn Budget’s biggest headline for landlords was an increase to the additional stamp duty rate – known as the higher rate surcharge – applied to second homes, investment properties and purchases made by corporate investors. The surcharge rose from 3% to 5%, taking effect from 31 October 2024.
In the months that followed, buy-to-let transactions fell sharply, down 9.36% in November compared with the previous month and a further 35.28% in December - highlighting just how sensitive the market is to change.
Nakita Moss, head of lender relationships at Twenty7tec, commented: “We’re seeing a clear behavioural shift as landlords respond to higher borrowing costs and tighter yields. More landlords are focused on refinancing rather than expanding, taking advantage of stabilising rates to secure long-term certainty. The era of portfolio growth has paused - for now it’s about resilience and risk management.”
Nathan Reilly, commercial director at Twenty7tec, said: “The figures suggest a market in transition: steady, active, and cautious. Landlords appear to be locking in rates while they can, signalling confidence in the long-term rental market but restraint when it comes to expansion.”
Alex Greenin, The Mortgage Guy, added: “I have seen a bit of a slowdown in buy-to-let purchases, but people are still investing, just not at full speed. They’re being more calculated with their choices.
“I completely agree that landlords are focusing on remortgaging as fixed rates come to an end. They’re working hard to make their portfolios perform as efficiently as possible. The smaller, back-room landlords have definitely taken a hit over the past few years. There isn’t as much profit in buy-to-lets as there used to be, and that’s forcing many to rethink their strategy rather than expand.”
