UK landlords remain confident in the buy-to-let market with many planning to expand their portfolios in 2025 but economic and regulatory uncertainties continue to dampen their outlook, latest research from Market Financial Solutions reveals.
It found that 36% of landlords plan to expand their portfolios in 2025, compared to just 9% who plan to reduce the number of buy-to-let properties they own.
And over half (54%) of landlords expect house prices to rise in the next 12 months with four out of 10 (39%) saying they think prices will remain largely the same.
And a similar number (43%) of the landlords surveyed said that they believe rental yields will improve in the coming year.
WIDER CONCERNS
However, despite this optimism, the survey shows that affordability, economic instability, and regulation remain notable concerns.
Four out of 10 (41%) landlords are concerned about renters’ ability to pay rent; just over a third (35%) are worried about domestic economic uncertainty and just under a third (28%) highlight global instability as a key factor impacting their portfolios.
| Considering current market conditions, which of the following, if any, do you believe represent the biggest risks to your BTL property portfolio in 2025? (Select up to three)
|
% who selected this factor
|
| Renters’ ability to meet rental payments due to inflation and a higher cost of living. | 41% |
| Domestic political or economic instability that could negatively affect the property market. | 35% |
| Global political or economic instability that could negatively affect the property market. | 28% |
| Increased regulation in the buy-to-let market or private rental sector. | 27% |
| Slowing rental price growth or declining rental yields. | 27% |
| A decline in demand from non-dom buyers and renters in the UK property market due to changing non-dom rules. | 26% |
| Changes to the planning system reducing the desirability or demand for my properties due to new developments nearby. | 23% |
| The pace of interest rate cuts by the Bank of England being slower than expected. | 21% |
| Limited availability of finance options (e.g. mortgages, buy-to-let mortgages, bridging loans). | 19% |
| Falling property prices or a downturn in the property market. | 15% |
RESILIENT SECTOR
Paresh Raja (main picture), Chief Executive of Market Financial Solutions, says: “It’s encouraging to see landlords expressing such confidence in the UK buy-to-let market, with many actively looking to expand their portfolios.
“This reflects the resilience of the sector and the continued demand for rental properties despite much speculation around landlords selling up. However, the risks identified in our research demonstrate the need for landlords to avoid complacency when managing their portfolios.”
LANDLORD SUPPORT
And he adds: “New regulations, economic fluctuations, and affordability concerns for renters will likely all play a role in shaping landlords’ investment strategies in the months ahead.
“For lenders and brokers, the data serves as an important reminder that, while interest rates are falling and market conditions are improving, landlords will continue to need support to make informed decisions about their portfolios.”
