According to the latest Mortgage Solutions poll, approximately 26% of brokers who responded said they had seen a significant rise and 25% had seen a small uptick in BTL enquiries.
However, the poll results show a mixed picture of the BTL market, with 22% saying they had not seen any change in enquiry levels and 24% saying they had seen a fall.
Ying Tan, Habito’s CEO, said the poll results reflected exactly what the firm was seeing at the moment, noting that the “buy-to-let market is incredibly mixed at the moment and that is largely down to who you are and what you are trying to do”.
He explained: “Experienced landlords are coming back into the market. They are either remortgaging to release equity or taking advantage of softening house prices to expand their portfolios.
“These landlords are generally better placed to navigate affordability stress tests and have a longer-term view. They understand the market cycles and are doubling down on property as a core part of their investment strategy.”
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However, he said that at the same time, there was a “clear drop in activity among first-time landlords and let to buy customers”.
“Many are struggling to make the numbers work with higher rates, tougher stress tests and more complex regulations. It is a much harder entry point right now,” he added.
Tan said the range of responses therefore made “perfect sense”, as there is “no single narrative in buy-to-let space right now”.
“It all depends on the type of customer you are speaking to and what their goals are,” he noted.
Stephanie Daley, director of partnerships at Alexander Hall, agreed that the poll had “mixed” results, positing that advice firm specialisms could be instrumental in some seeing higher enquiry levels than others.
“No longer are we seeing the ‘dinner party landlord’ let to buy scenario, which has been incredibly popular in the past – especially in areas such as London and the South East, which have seen strong house price growth.
“Now, enquiries are much more complex, with more landlords choosing to operate via a limited company structure. There were 61,517 new buy-to-let limited companies set up in 2024, a 23% increase on 2023, and there are more choosing to venture into different types of investment such as houses in multiple occupation (HMOs), student lets and multi-unit blocks (MUBs).
“More common enquiries now come from existing landlords expanding their portfolios or making changes within their portfolio, as opposed to new landlords entering the market,” she said.
Investors looking to ‘buy, refurbish and refinance in the coming years’
Ceri Evans, director of mortgages and protection at Remoo – a mortgage broker firm based in Wales – said it had seen a rise in BTL enquiries in the last few months.
He said: “Investors are actively looking for properties they can buy, refurbish and refinance in the coming years, and there’s a growing appetite for these sorts of deals in the core region we operate in.
“From our point of view, it’s great to see investors coming back to the market to pick up properties that need modernising and committing to the work. There’s always a risk when buying older properties, so providing the right advice on the initial type of product required, if any exit product is required and what potential refinancing looks like both in the short and long term is crucial.”
Evans noted that it was “optimistic this will continue for the rest of the year”, given the expectation of 2-3 base rate cuts by the Bank of England and a continuation in the gradual decline in swap rates.
“In an ideal world, what we’d really like to see is the government kick on with their housebuilding promises, which would mean significantly more housing stock and choice for both residential buyers and investors,” he said.
Landlords have shown ‘resilience’ but legislation issue
John Phillips, CEO of Just Mortgages and Spicerhaart, said many had thought that stamp duty changes would be the “death nail” for the BTL sector, but landlords have “once again show[n] their resilience”.
From 1 April, those buying additional properties will pay 7% stamp duty for property values from £125,001 to £250,000, up from 5%.
“Property remains a solid investment vehicle, particularly as demand continues to outstrip supply and rental yields remain robust. If anything, landlords have taken the decision in their stride and adapted – whether that’s factoring in the additional cost into negotiations or looking into other areas of the country where there’s more pressure on prices or where the stamp duty bill will be lower,” he said.
Phillips added that its “lettings book shows no sign of slimming down”, but said more rental properties were needed, along with quality landlords to provide them.
“Competition among buy-to-let lenders and ongoing innovation – whether that’s for purchasing or refinancing – certainly helps too,” he added.
Daley said data from its London-based estate agency partner showed that in March, there was a 14% rise in listings on the month before, showing a “strong supply of properties” in the private rented sector, and that there had been a mass exodus of landlords as some had predicted.
“Over the last quarter, we’ve seen the buy-to-let market showing signs of growth and confidence, driven by improved mortgage rates and a steady demand for rental properties. However, landlords are navigating challenges posed by legislative changes.
“There is concern about the upcoming Renters’ Rights Bill and EPC changes. For me, this just highlights the need for landlords to be speaking to advisers who are truly buy-to-let experts and who can provide guidance on all aspects of being a landlord in 2025,” she said.
