The latest findings from the Property118 Landlord Sentiment Survey for the first quarter of 2026 reveal a significant shift in landlord behaviour that is set to impact mortgage lenders operating in the buy-to-let sector. Rather than focusing on growth and expansion, many landlords are now prioritising portfolio management and optimisation.

Changing Landlord Behaviour

Mortgage lenders in the buy-to-let market are witnessing a fundamental change, not primarily driven by interest rates or product offerings, but by how landlords behave. The traditional approach, where landlords sought to grow their portfolios through borrowing and refinancing to release equity, is no longer the default strategy. Instead, a growing number of landlords are choosing to hold their current assets or even reduce their exposure.

This behavioural shift affects lending demand significantly. Historically, lending volumes were propelled by acquisition and refinancing cycles, with landlords borrowing to expand and then refinancing to fund further growth. Now, demand is becoming more selective and strategic, focusing less on volume and more on the effective management of existing portfolios.

Implications for Mortgage Lenders

For lenders, this means adapting to a different market dynamic. The borrower base is increasingly composed of experienced landlords who are refining their portfolios rather than seeking to scale rapidly. Conversations with these clients are evolving from questions about borrowing capacity to discussions about the most suitable loan structures to support their current positions.

This change suggests that future lending activity will be shaped more by optimisation than expansion. Product design, underwriting criteria, and broker relationships may need to evolve to meet the demand for flexibility, efficiency, and long-term alignment with landlords’ goals.

Survey Insights

The Property118 Landlord Sentiment Survey Q1 2026 provides clear evidence of this trend, with the majority of landlords indicating intentions to either reduce their portfolios or maintain their current holdings rather than pursue growth. This signals a more cautious and considered approach to borrowing within the sector.

What this means for landlords

For landlords, particularly those with established portfolios and relatively low borrowing, this is an opportune moment to reassess how their assets are structured. Taking a holistic view of the portfolio can help identify opportunities for greater efficiency and long-term sustainability. Engaging in strategic discussions about portfolio management may prove more beneficial than focusing solely on expansion.

Landlords who are holding steady or reassessing their borrowing arrangements may find value in exploring tailored lending solutions that support their current needs rather than seeking to maximise scale. This approach aligns with the broader market shift towards portfolio optimisation.

An invitation for established landlords

Property118 offers landlords with established portfolios the opportunity to engage in free introductory discussions to explore how their assets work collectively and what that might mean for the future. These conversations are particularly useful for those beginning to reflect on how their portfolios could be managed more effectively in the years ahead.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/