Landlords plan rent rises and property purchases

Rent rises are on the agenda for 83% of landlords over the next 12 months, while more than a third intend to buy another property.

The findings come from Landbay’s Q3 survey, which was sent to more than 2,000 landlords before last week’s Budget.

Among respondents planning increases, the most common approach was to raise rents in line with inflation.

The proportion intending to put rents up has risen from more than 75% in the previous survey.

Budget could change plans

Rob Stanton, Landbay’s sales and distribution director, said: “What comes through from these latest results is that landlords remain very much committed to the buy to let sector, even if confidence and investment intentions vary depending on individual circumstances.

“It is encouraging to see an increase in those feeling positive about their own businesses, while more than a third still intend to purchase additional properties over the next year.”

He added: “Of course, these responses were gathered before last week’s Budget, which has introduced a further increase in the tax on property income for landlords holding properties in their personal names, and it will be interesting to see whether this changes investment intentions or confidence levels as we move into 2027.

“One area which really stands out is the importance of remortgaging and product transfers, with almost six in 10 respondents expecting to take one of these routes when their existing deal ends, while a further quarter have yet to make a decision.”

Landlord property purchase plans

The proportion intending to buy at least one more property was 34%, compared with 35% in the previous survey.

However, 56% had no plans to purchase, up from 52%, with the remainder undecided.

On sales, 43% expected to keep their properties over the coming year, while 39% planned to sell at least one.

Confidence in respondents’ own businesses rose from 22% to 28%, although the share expressing a negative view also increased, from 37% to 40%.

Buy to let refinancing

When their current mortgage deal ends, 38% expect to take another product with their existing lender and 21% anticipate moving to a different lender.

Just over a quarter have yet to decide what to do.

Mortgage interest rates were the main consideration for 34% of respondents, closely followed by the total cost of borrowing.

Two- and three-year fixed rates were the most popular choice, ahead of five-year deals, while 78% said they would return to the same adviser for their next buy to let mortgage.