Most landlords appear measured and cautiously optimistic about their portfolios and future investment in the private rented sector despite continued tax and regulatory pressures, research from Landbay suggests.
Landlords are facing a series of changes including new responsibilities under the Renters’ Rights Act and a planned 2% increase in property income tax from 2027.
Even so, almost half of those surveyed said they do not currently plan to buy or sell property over the next 12 months.
Around a third said they expect to take action, while a significant proportion are still reviewing their options.
BUDGET IMPACT
Views were similarly split on the impact of the Budget. When asked whether it would influence their plans over the next year, 44% said it would affect decisions to buy or sell, while 12% said it had made no difference.
Among landlords planning to act, many said they expect to review ownership structures, including moving properties held in personal names into limited company structures.
Others indicated they may revisit purchase plans or consider rent increases. However, planned rent rises were generally modest, with most landlords expecting increases broadly in line with inflation or slightly above, reflecting uncertainty around future costs and compliance requirements.
PRICING SHIFT
The survey also highlighted a shift in the mortgage pricing environment. More than a third of landlords said their most recent buy-to-let mortgage carried a rate above 5%, reflecting deals taken during the peak of the interest rate cycle.
Rob Stanton (main picture, inset), Sales and Distribution Director at Landbay, says: “Landlords are incredibly realistic about the current pressures in the sector, particularly around tax and regulation, but also that they are actively engaged with the market, and looking for ways to improve the performance of their portfolios.
“Landlords were not enamoured of the Budget – that is obvious – but they are taking steps to mitigate against measures which may increase their costs, and many plan to add to portfolios, shift ownership structure, and raise rents, in order to ensure they remain profitable.”
