Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Landlords’ Buy-to-Let Sentiment Holds Steady Despite Economic Concerns
A recent survey by Landbay has found that landlords’ attitudes towards buy-to-let (BTL) property have stabilised, even as wider economic confidence remains low. The survey, reported by Mortgage Solutions, highlights that while landlords are cautious about the UK economy, their outlook on their own BTL businesses is more positive or neutral.
According to the survey, 21.8% of landlords described their view of their individual BTL businesses as positive, while 41.4% were neutral and 36.8% were negative. In contrast, over two-thirds of landlords expressed a negative outlook on the UK economy, with only 3.8% viewing it positively.
Portfolio Strategies and Market Activity
The majority of landlords surveyed do not plan to buy or sell properties in the next 12 months. Specifically, 51.9% are not intending to buy additional properties, while over a third are planning to add to their portfolios. Selling intentions remain consistent with previous surveys, indicating ongoing portfolio growth rather than a large-scale exit from the market.
Yields, Rent Growth, and Mortgage Preferences
Many landlords reported solid returns, with 27.1% achieving gross yields of 4-6%, 21.8% reporting 6-8% yields, and 15.8% seeing yields of 10% or above. Over three-quarters of respondents plan to increase rents in the coming year, with more flexible approaches to rent setting noted following the first phase of the Renters’ Rights Act.
Fixed-rate mortgages remain the preferred product, with 87.2% of landlords favouring two-, three-, or five-year fixes for their next mortgage. Five-year fixed rates are the top choice, cited by almost half of respondents. Only 6% said they were likely to choose a tracker mortgage for their next deal. Refinancing was identified as a key theme, with opportunities for landlords to secure lower rates than those available 2-3 years ago.
Broker Usage Among Landlords
The survey also found that 83% of landlords used a broker from the start for their last BTL purchase, while 10% began the process alone but later enlisted a broker’s help.
Source: Mortgage Solutions