Market volatility drives a third of landlords to cut activity
More than 80% of landlords currently regard the buy-to-let market as either unstable or unpredictable, according to new survey findings from lender Landbay.
Some 55.6% described conditions as "somewhat unpredictable" while 26.3% characterised the market as "highly volatile", with the results reflecting disruption seen during March and April, particularly around rates and product availability.
Landbay said that despite the difficult conditions, landlords remain engaged and are actively seeking funding and advice.
Still, recent market conditions have somehow altered landlord behaviour. More than a third (35.3%) said they had scaled back activity in response to global events and rate movements, while 21.8% said they had deferred plans entirely.
Nearly half (49.6%) said their confidence in accessing buy-to-let finance had deteriorated in recent months, though 45.1% reported no change, suggesting many still consider funding accessible.
On product availability, 57.9% of respondents described current buy-to-let choice as "limited", with a further 24.8% saying it was "very limited". Landbay said availability has begun to improve in recent weeks as lenders reintroduce products and pricing stabilises following the earlier volatility.
Despite ongoing disruption, landlord activity held up. Around a quarter of respondents (25.6%) said they had completed a buy-to-let mortgage in the past month, while a further 24.1% said they were currently progressing one. Landbay said this indicated continued engagement with the market even in difficult conditions.
Broker use also remained high. More than 82% of respondents said they had used an adviser from the outset when arranging their most recent mortgage, while nearly 10% initially attempted to arrange finance independently before turning to a broker to complete the process.
While competitive rates remain the most important factor landlords seek from lenders, the survey identified growing emphasis on certainty, consistency and communication. Two-thirds (66.2%) cited competitive rates as their primary consideration, but 44.4% also highlighted certainty once a mortgage offer had been issued, 36.1% said stability of pricing during the application process was important, and 34.6% pointed to consistent product availability.
Nearly 40% of landlords reported no issues with their most recent application. However, 27.8% said they had needed to move quickly to secure products, 19.5% experienced delays caused by changing market conditions, and 18.8% had to switch products mid-application.
"The purpose of this section of our survey was to understand how landlords have been coping with the volatility and uncertainty we saw during March and April, and whether this had materially shifted confidence, activity or borrowing behaviour," said Rob Stanton (pictured right), sales and distribution director at Landbay. "What comes through very clearly is landlords remain active and engaged with the market, but they are placing much greater value on certainty, consistency and communication from lenders and advisers.
"While rates remain incredibly important, landlords also want confidence that products will remain available, that cases will progress smoothly and they can rely on lenders to support them through periods of market volatility.
"It is also very telling that almost half of respondents have either completed or are currently progressing a mortgage despite the recent instability. Activity is still very much there, and advisers continue to play an incredibly important role in helping landlord borrowers navigate changing market conditions.
"The fact nearly 10% initially attempted to arrange finance themselves before moving to an adviser also demonstrates the increasing value of professional support in a more complex market."
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