Latest landlord survey shows portfolios holding up, with fixed rates remaining the dominant borrowing preference
Landlord confidence in the buy-to-let market has held firm despite persistent uncertainty about the wider economy, findings from Landbay's latest landlord survey have shown.
The survey highlights a widening divergence between landlords' confidence in their own portfolios and their view of the national economic outlook. When assessing their own buy-to-let businesses, 41.4% of respondents described themselves as neutral, 21.8% as positive and 36.8% as negative. Views of the UK economy were considerably more downbeat, with 69.2% expressing a negative outlook, 27.1% neutral and just 3.8% positive.
The data indicates landlords are becoming more decisive about their holdings. Just over half (51.9%) said they had no current plans to acquire additional properties, while more than a third (35.3%) intended to expand their portfolios over the next 12 months. Selling intentions remained in line with previous survey results, suggesting continued portfolio reshaping rather than widespread withdrawal from the market.
A substantial proportion of respondents continue to report solid returns. Around 27.1% recorded gross yields of between 4% and 6%, with 21.8% achieving between 6% and 8%, and 15.8% reporting yields of 10% or above. More than 75% of landlords said they planned to raise rents over the next 12 months, though approaches to rent-setting are becoming more flexible — a shift Landbay attributed in part to the introduction of the Renters' Rights Act, as landlords weigh rising costs against new legal obligations and tenant affordability.
Demand for fixed-rate products remains strong, with 87.2% of respondents indicating a preference for two, three or five-year fixed-rate mortgages for their next deal. Five-year fixes were the most popular choice at 46.6%. Only 6% said they would likely opt for a tracker product, suggesting certainty of borrowing costs continues to outweigh variable-rate alternatives despite increased market discussion around trackers.
Landbay noted that many landlords coming off existing deals may be able to secure more favourable terms than those available two to three years ago, and that the volume of deals expiring this year represents a material opportunity for brokers.
The survey also reinforced the centrality of professional advice. Some 83% of respondents said they used a broker from the outset of their last buy-to-let mortgage transaction, with a further 10% beginning independently before enlisting a broker to complete the deal.
"The key difference compared to the results of our previous survey is that sentiment and confidence appears to have stabilised, even during a somewhat turbulent few months, particularly when it comes to product availability and rates," said Rob Stanton (pictured right), sales and distribution director at Landbay. "Landlords, for the most part, appear to be very confident about their own property businesses, and the future of their investments, even when their views on the future performance of the wider economy remain far more sceptical.
"What we are therefore seeing is a landlord community which is predominantly focused on what they can control. They are making clearer decisions on whether to buy, sell or hold, and are continuing to adapt their strategies to ensure their portfolios remain profitable. It is also clear many landlords continue to achieve strong yields, which underpins their ability to remain active in the market, even in a more challenging environment.
"At the same time, a large number of landlords are still on higher-rate mortgages arranged when pricing was less favourable. Even with recent changes, the current environment still presents a clear opportunity for brokers to communicate with those clients and potentially secure improved outcomes."
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
