Lenders and brokers urged to support landlords in their investment plans
A significant number of UK landlords plan to expand their buy-to-let (BTL) portfolios in 2025, but concerns about economic conditions and regulations persist, according to new research from Market Financial Solutions (MFS).
The London-based lender commissioned an independent survey of 300 landlords to assess their market outlook and investment plans for the next year. The findings show that 36% intend to increase their property holdings, while only 9% expect to downsize their portfolios.
More than half, or 54%, anticipate house prices will rise over the next 12 months, with 39% predicting they will remain stable.
Rental yields are another area of optimism, with 43% of respondents expecting improvements in the coming year.
A separate report from market research firm Pegasus Insight published earlier this year indicated a steady rise in landlord confidence. In Q4 2024, 37% of landlords reported feeling positive about their prospects, up from 33% in the same period the previous year. The study noted that since mid-2023, sentiment among property investors has gradually improved.
However, the MFS survey highlights ongoing challenges. Affordability remains a concern, with 41% of landlords worried about tenants’ ability to pay rent. Economic uncertainty is another factor, cited by 35% of respondents, while 28% pointed to global instability as a potential risk.
Paresh Raja (pictured), chief executive of Market Financial Solutions, noted that while landlord confidence is strong, external pressures cannot be ignored.
“It is encouraging to see landlords expressing such confidence in the UK buy-to-let market, with many actively looking to expand their portfolios,” he said. “This reflects the resilience of the sector and the continued demand for rental properties despite much speculation around landlords selling up. However, the risks identified in our research demonstrate the need for landlords to avoid complacency when managing their portfolios.”
He added that shifting regulations, economic changes, and affordability issues for tenants will influence investment strategies moving forward.
“For lenders and brokers, the data serves as an important reminder that, while interest rates are falling and market conditions are improving, landlords will continue to need support to make informed decisions about their portfolios,” Raja said.
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