Landlord Confidence Dents Yet Buy-to-Let Activity Persists

Recent research from Landbay, conducted between late December and early January, highlights a mixed outlook among UK landlords following the Autumn Budget. While 40% of landlords report feeling negative about the future of their buy-to-let businesses, most describe their sentiment as either positive or neutral. This suggests a pragmatic approach to the evolving challenges within the private rented sector (PRS).

Realistic Responses to Tax and Regulation

Rob Stanton, Landbay’s sales and distribution director, commented on the survey findings: “The results of this new iteration of our survey show 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.”
Despite dissatisfaction with the Budget measures, landlords are taking proactive steps to mitigate increased costs. These include plans to expand portfolios, alter ownership structures, and increase rents where feasible to maintain profitability.

Mortgage Costs and Remortgaging Strategies

A significant concern for landlords is mortgage pricing. Over a third of respondents currently have buy-to-let mortgage rates exceeding 5%, reflecting deals secured during the peak of recent rate cycles. Stanton noted, “The good news here is that over the past six months in particular, pricing has shifted considerably, and advisers are likely to be able to secure some considerable savings for those borrowers coming up to remortgage.”
Looking ahead, landlords show a preference for stability, with five-year fixed-rate buy-to-let mortgages emerging as the most popular choice for upcoming remortgages.

Impact of the Renters’ Rights Act and Future Tax Changes

The introduction of the Renters’ Rights Act (RRA) and the forthcoming 2% rise in property income tax scheduled for 2027 continue to influence landlord decisions. These regulatory changes are significant factors in shaping expectations and investment strategies within the sector.
Almost half of landlords surveyed do not plan to buy or sell property in the next 12 months, while about a third are considering such moves, and others remain undecided.

Shifts Toward Incorporation and Portfolio Restructuring

Among landlords planning changes, restructuring ownership is a common theme. Many intend to transfer properties held in personal names into limited companies, a move often motivated by tax efficiency and liability considerations.
Rent increases are expected to align broadly with inflation or be slightly higher, reflecting landlords’ cautious approach amid uncertainty over future costs and compliance requirements.

What This Means for UK Landlords

The survey underscores a sector adapting to a challenging environment. While confidence has been dented by the Autumn Budget and regulatory changes, landlords are actively managing their portfolios to sustain profitability. Understanding mortgage market shifts and considering ownership restructuring are practical steps landlords are taking to navigate current pressures.
Remaining informed about regulatory developments such as the Renters’ Rights Act and future tax changes will be essential for landlords to make strategic decisions in the coming years.

Suggested internal link anchors

• buy to let landlord confidence
• private rented sector
• Autumn Budget impact
• Renters’ Rights Act
• property income tax rise
• buy to let mortgage rates
• portfolio restructuring
• limited company ownership
• rent increases
• remortgaging strategies

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/