Over two-fifths of landlords are concerned about renters’ ability to pay rent, according to a new survey
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, 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.
“It is encouraging to see landlords expressing such confidence in the UK buy-to-let market, with many actively looking to expand their portfolios," comments Paresh Raja (pictured), CEO of Market Financial Solutions, "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.
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.”