According to a survey from Landbay, approximately 27.2% of landlords surveyed said they were neutral about the Budget’s impact on their investment strategy and 11.2% said they felt more positive.
The Budget contained several measures that impacted the BTL space, including a 2% increase in property income tax, to be introduced in 2027.
The Renters’ Rights Bill also came into law at the end of last year, with a raft of measures that will impact landlords.
The report found that almost half of landlords do not intend to buy in the next year and 17.6% said they were unsure.
However, around a third said they still planned to purchase at least one property.
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On the selling side, 47.2% said they did not plan to sell and 40.8% plan to sell at least one property.
Around 45.6% of landlords said they expected to raise rents in line with inflation, with 12% estimating rent increases of 7-10% and 13.6% expecting no change.
Rob Stanton, sales and distribution director at Landbay, said: “The results of this new iteration of our survey show landlords are incredibly realistic about the current pressures in the sector, particularly around tax and regulation, but also that they are actively engaged with the market, and looking for ways to improve the performance of their portfolios.
“Landlords were not enamoured of the Budget – that is obvious – but they are taking steps to mitigate against measures [that] may increase their costs, and many plan to add to portfolios, shift ownership structure, and raise rents in order to ensure they remain profitable.
“One of the key takeaways, however, is just how many landlords are carrying higher-rate mortgages arranged when pricing was less favourable. The good news here is that over the past six months in particular, pricing has shifted considerably, and advisers are likely to be able to secure some considerable savings for those borrowers coming up to remortgage.”
He continued: “Our own Premier range has products starting with a two, far below the 5/6% deals a large number of landlord borrowers are currently on, and this presents a clear opportunity for advisers to revisit those clients and potentially secure much more favourable rates.
“With product transfers increasing across the market, it is vital that advisers remain close to their landlord clients. Reviewing existing borrowing and understanding how pricing has changed can make a meaningful difference to monthly costs and future planning.
“At Landbay, we remain firmly intermediary-only. Our premier range, alongside our adviser-led product transfer proposition, is designed to support advisers and their landlord clients as they navigate a more complex but opportunity-rich market.”
