A substantial proportion of respondents continue to report solid returns. Around 27.1% recorded gross yields of between 4% and 6%, with 21.8% achieving between 6% and 8%, and 15.8% reporting yields of 10% or above. More than 75% of landlords said they planned to raise rents over the next 12 months, though approaches to rent-setting are becoming more flexible — a shift Landbay attributed in part to the introduction of the Renters’ Rights Act, as landlords weigh rising costs against new legal obligations and tenant affordability.
Demand for fixed-rate products remains strong, with 87.2% of respondents indicating a preference for two, three or five-year fixed-rate mortgages for their next deal. Five-year fixes were the most popular choice at 46.6%. Only 6% said they would likely opt for a tracker product, suggesting certainty of borrowing costs continues to outweigh variable-rate alternatives despite increased market discussion around trackers.
Landbay noted that many landlords coming off existing deals may be able to secure more favourable terms than those available two to three years ago, and that the volume of deals expiring this year represents a material opportunity for brokers.
The survey also reinforced the centrality of professional advice. Some 83% of respondents said they used a broker from the outset of their last buy-to-let mortgage transaction, with a further 10% beginning independently before enlisting a broker to complete the deal.
“The key difference compared to the results of our previous survey is that sentiment and confidence appears to have stabilised, even during a somewhat turbulent few months, particularly when it comes to product availability and rates,” said Rob Stanton (pictured right), sales and distribution director at Landbay. “Landlords, for the most part, appear to be very confident about their own property businesses, and the future of their investments, even when their views on the future performance of the wider economy remain far more sceptical.