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17/12/25 3:30 pm
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Most landlords appear cautiously optimistic about their portfolios and future investment in the PRS despite ongoing tax and regulatory pressures.
Buy-to-let lender Landbay says that with the Renters’ Rights Act due to take effect in a few months and a 2% property income tax rise due in 2027, many plan to add to their portfolios, shift ownership structure, and raise rents to stay in the black during the next 12 months.
In its latest survey, almost half of landlords say they don’t plan to buy or sell properties, although a third are planning to do so, while a significant proportion are still reviewing their options.
For those planning to restructure portfolios, most expect to review ownership structures, potentially moving property held in individual names into limited company vehicles, as well as reviewing purchase plans and potentially raising rents, reports Landbay. However, planned rent increases were typically modest, with most landlords expecting to raise rents broadly in line with inflation or slightly above, reflecting some uncertainty around future costs and compliance requirements.
More than a third of landlords are paying more than 5% on their most recent buy-to-let mortgage, which Landbay says reflects deals secured during the peak of the recent rate cycle. At the same time, landlords were considering longer time frames with five-year fixed rates the most popular choice, highlighting a preference for stability and longer-term certainty.
The lender says remortgaging to the lower rates now available after recent shifts downwards in price would represent a significant saving of many thousands of pounds for landlord borrowers and would go a long way to mitigating any increase in costs during the year ahead.
Rob Stanton, sales and distribution director at Landbay, says its research shows just how many landlords are carrying higher-rate mortgages arranged when pricing was less favourable. Adds Stanton: “The good news here is that over the past six months in particular, pricing has shifted considerably, and advisers are likely to be able to secure some considerable savings for those borrowers coming up to remortgage.”
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