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.

Professional Landlords Continue to Back Buy-to-Let Amid Political Uncertainty

Professional landlords are continuing to expand their buy-to-let (BTL) portfolios despite ongoing political uncertainty and speculation about potential changes to property taxation. Data from Fleet Mortgages shows that experienced landlords are increasing their holdings, with limited company borrowing now the norm in the sector.

Recent analysis has focused on what the new government under Prime Minister Andy Burnham could mean for housing policy, including possible reforms to stamp duty, council tax, and wider property taxation. While some commentators suggest that this uncertainty may cause prospective buyers to delay purchases, Fleet Mortgages reports that professional BTL investors are not following this trend.

According to Fleet Mortgages’ Q2 Rental Barometer, the average Fleet landlord now owns 16 investment properties, up from 10 last year. This figure has risen steadily over successive quarters, indicating that experienced landlords have continued to add to their portfolios despite interest rate volatility and changing market conditions.

The composition of landlord portfolios is also changing. Landlords with 15 or more BTL properties now account for 26% of Fleet Mortgages’ business, up from 16% a year ago. Meanwhile, those with between one and three properties have seen a slight decrease, and landlords with six to 14 properties have increased their share of applications from 26% in Q1 to 30% in Q2 this year.

Limited company borrowing has become standard practice among professional landlords, with 78% of all applications now made through corporate structures. This shift reflects a trend towards treating property portfolios as businesses rather than collections of individual properties.

While political developments such as potential reforms to stamp duty or council tax remain relevant, there are still many unanswered questions about how these changes might affect BTL investment decisions. The current additional stamp duty surcharge for investment properties and the general practice of tenants paying council tax, except in specific cases like HMOs, are among the factors that could influence any future policy changes.

For letting agents and inventory clerks, these trends suggest ongoing demand for professional property management and inventory services as experienced landlords continue to grow their portfolios and operate through limited companies.