Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Landlord Confidence Holds Steady Despite Economic Concerns
Landlord sentiment remains stable despite wider economic turmoil, according to Landbay’s latest sentiment survey. The survey found that landlords are continuing to make clear and considered decisions about their portfolios, even as confidence in the broader UK economy remains low.
The survey revealed that 41.4% of landlords described their outlook on their own buy-to-let businesses as neutral, with 21.8% positive and 36.8% negative. In contrast, confidence in the UK economy was much lower, with 69.2% of landlords expressing a negative outlook, 27.1% neutral, and only 3.8% positive.
Landbay noted that landlords are focusing on factors they can control, such as portfolio performance and financing, while remaining cautious about the wider economic environment. Most landlords do not plan to buy or sell properties in the next 12 months, but a significant proportion still intend to act. The survey found that 51.9% do not plan to purchase additional properties, while 35.3% are planning to add to their portfolios. Selling intentions remain consistent with previous findings, indicating ongoing portfolio reshaping rather than a large-scale exit from the sector.
Rental Yields and Rent Increases
Despite the economic backdrop, many landlords continue to report solid returns. According to the survey, 27.1% of landlords are achieving gross yields between 4-6%, 21.8% report yields in the 6-8% range, and 15.8% are seeing yields of 10% or above. Over 75% of landlords plan to increase rents in the next 12 months. However, approaches to rent setting are becoming more flexible, which Landbay suggested may be influenced by the introduction of the Renters’ Rights Act, as landlords balance rising costs with new legal responsibilities and tenant affordability.
Mortgage Preferences
The survey also found that landlords continue to favour fixed-rate mortgage products. Most (87.2%) prefer two, three, or five-year fixed rates for their next mortgage, with five-year fixes (46.6%) being the most popular. Only 6% of landlords said they were likely to choose a tracker product for their next mortgage.
Source: Mortgage Strategy