The accidental landlord era is ending, but the professional one is just beginning
Savills recently reported that just under 700 buy to let properties are coming on to the market a day. This figure is up 28% from 2024 and 9% above 2025.
But the real story lies behind the headlines. Neil Cadwallader, Business Development Manager at Family Building Society says many of those selling up are individual landlords — and 20-30% of them are snapped up by professional landlords at good prices, rejoining the rental ranks sooner rather than later.
“The buy-to-let market remains resilient and structurally sound,” continues Cadwallader. “And buyers are savvy: at the end of the day every landlord is looking for yield — and yield is where it’s at, at the moment.”
Fellow BDM Stuart Heavens agrees that “resilient is the right word.”
“Even if small-time landlords are deciding it's not necessarily for them, there’s still demand for the more professional landlords who are able to take a more measured approach,” he says. “And there are still clients there that need servicing.”
A market in transition: the exodus that isn't
The days of the accidental landlord are on the decline: in the wake of legislation, regulatory, and tax changes, single Assured Shorthold Tenancies are losing steam. Cadwallader points to “a massive move” towards multiple occupancy properties, such as multi-unit freeholds and HMOs.
This is driving a more professional approach to the buy-to-let market. Limited company structures, once considered an accelerating trend, are now common practice.
“The majority have sought tax advice and started those steps, where it's right for them,” Heavens says. “It's now the norm.”
That ramped up business mindset is also playing out in other ways. For example, EPC considerations. While smaller landlords may be discouraged by the upgrades required to older properties, portfolio landlords are purpose-buying houses with a plan to get them compliant or looking for new builds where no changes are required.
“That's the professionalism we’re seeing from a lot of the landlords of today, eyes wide open on future standards,” Cadwallader says.
Another illustration is older landlords passing portfolios down to younger family members, who in turn are converting any still personally held properties into limited companies. Family Building Society can take gifted equity and accommodate up to eight directors on a limited company application, including structures involving minority shareholders — useful for families doing longer-term tax planning.
Family Building Society strives to evolve as the market changes, from being one of the first and few to lend to borrowers up to 95 years old to most recently revamping products to better capture this burgeoning new area.
“We've always done multi-unit freehold at normal rates — that's a real differentiator for us — and moreover on the HMO products we expanded to six-bedroom professional lets,” Cadwallader explains. “We see the way the wind is blowing. We're moving as fast as we can to capture, and service, brokers and customers alike.”
No minimum income requirement, no maximum portfolio limit, no portfolio stress test
For brokers, the biggest opportunity is to focus on professional landlords who are actually going to grow. Cadwallader recommends partnering up with an accountant to make the advice offered more holistic and actively target the professional landlord cohort.
“They’re going to be in the market for many years to come,” he adds.
Heavens offers a practical reminder for brokers to look after what they already have. Keep in touch with clients to be front-of-mind and be on hand for product transfers and remortgages as they come up, he urges.
“Brokers who stay on top of existing clients will retain what they've got — and any new opportunities, capital raises, whatever else, will be theirs.”
It’s also prudent to explore lenders who are meeting the moment. Affordability assessments have been overhauled at Family Building Society, delivering more borrowing power on remortgage cases. Five-year products are now stressed at pay rate, while stress testing on two-year products has been reduced. This gives landlords more flexibility on shorter-term deals in the current rate environment.
On the product side, minimum property value was recently reduced to £75,000 from £120,000. This move was driven by the realities of the market outside the southeast, particularly in the North of England, the Midlands, and the South Wales valleys.
“You can still buy a three-bed terraced house for £70,000 to £80,000 and get £600 a month rent off the back of that — the yield is really good,” Cadwallader explains.
Heavens adds that “for landlords looking to grow their portfolio, smaller deposits on lower-value properties help support diversification.”
Heavens also points to the fact that, unlike many other lenders, Family Building Society has no minimum income requirement for buy-to-let. The conversations he has with brokers reflect that flexibility. When a broker calls to ask about income requirements, his response is to ask a question of his own: how will the borrower cover rental voids?
It's a practical, case-by-case approach, Heavens says, rather than a rigid threshold. Cash and savings, investments, a pension, or a partner with a good income — any of these can provide the reassurance needed to move forward.
For Cadwallader, there must be a wider push of education on what lenders can offer in the buy-to-let sector; “At Family Building Society, we’re keen to get the message out that there’s a team of significant bench strength waiting to assist, and with manual underwriting in the background there’s lots of flexibility to be had around property type and area.”
When brokers look to Family Building Society, Cadwallader wants three things to stand out: no minimum income requirement, no maximum portfolio limit, and no stress testing of background portfolios.
“It's amazing how many brokers don't actually know that type of criteria is out there,” he says. “We’re looking to change that.”
To find out more about what Family Building Society can do, visit their intermediaries page.
