Landlords optimistic about 2025, but concerns over regulation and economy remain
UK landlords remain confident in the buy-to-let (BTL) market, with many planning to expand their portfolios in 2025, but economic and regulatory uncertainties continue to dampen their outlook, new research from Market Financial Solutions has found.
The London-based lender commissioned an independent survey of 300 UK landlords to gauge their sentiment towards the BTL market and their plans for the next 12 months.
It found that 36% of landlords plan to expand their portfolios in 2025, compared to just 9% who plan to reduce the number of BTL properties they own. Further, most (54%) landlords expect house prices to rise in the next 12 months, with 39% saying they think prices will remain largely the same.
Additionally, 43% of the landlords surveyed said that they believe rental yields will improve in the coming year.
However, despite this optimism, the survey demonstrates that affordability, economic instability, and regulation remain notable concerns. Specifically, 41% of landlords are concerned about renters’ ability to pay rent, 35% are worried about domestic economic uncertainty, and 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% |
Paresh Raja, CEO of Market Financial Solutions, said: “It is 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.
“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.”
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