It is unfair to view buy-to-let investors as one homogenous group. There are so many different profile of landlords – and that of the ‘accidental landlord’ is often overlooked.
For a long time, the market has tended to assume that any expansion in buy-to-let will mainly come from seasoned portfolio landlords. with clear investment strategies and long-term plans.
But Carter Jonas research suggests the picture is more nuanced. Its latest Private Landlords Report found that while only 14% of landlords intend to expand, accidental landlords make up the largest share of that group at 42%.
At the same time, 80% of portfolio landlords said they do not expect to buy another property in the near term, with 37% citing regulatory complexity and 20% pointing to stretched finances.
Those figures raise an important question: does the market need to think differently about how it supports accidental landlords? I believe the answer is yes.
A TREND WORTH PAYING ATTENTION TO
That is not because accidental landlords are suddenly replacing professional investors, nor because they now represent the dominant force in buy-to-let. But in a market where confidence remains subdued – with many experienced landlords are choosing to adopt a ‘wait and see’ approach – accidental landlords are becoming a more important part of the overall picture.
If growth is limited, then understanding where that growth – or simply activity in general – is coming from matters. Right now, it appears to be coming from borrowers who may not see themselves as career landlords at all.
They may have inherited a property, moved in with a partner, relocated for work, or decided to let out a former home rather than sell it. In many cases, their entry into the sector is shaped more by circumstances than by a strong desire to invest.
That makes them different from the typical portfolio landlord, and it means the support they need may be different too.
Supporting a different kind of landlord journey
An experienced portfolio landlord will usually have a clearer grasp of borrowing structures, tax considerations, compliance obligations and portfolio planning.
By contrast, without wanting to over generalise, accidental landlords may need more guidance around mortgage suitability, rental coverage, affordability, property standards, licensing requirements, tax considerations and longer-term planning. They may also need help understanding whether a standard buy-to-let product, a more specialist solution, or another route altogether is most appropriate for their circumstances.
There are also bigger strategic questions to consider. Is this a short-term arrangement before a sale? Is it the start of a longer-term investment? Could the borrower look to expand in future, or are they simply trying to make the best of a property they already own?
These questions matter because they shape what the right mortgage solution actually looks like. A borrower who intends to keep a property for one or two years may need a different conversation from someone who is beginning to think about building a portfolio.
Equally, someone who has become a landlord unexpectedly may need more support understanding the responsibilities that come with letting a property.
That support is even more important in today’s property landscape. Regulatory demands are intensifying year on year, and the cost of being a landlord is harder to absorb when margins are tighter.
WHAT THIS MEANS FOR THE SPECIALIST FINANCE MARKET
Carter Jonas’ research underlines that complexity and financial pressure are already weighing on landlord confidence more broadly. Those pressures are unlikely to feel any lighter for smaller or accidental landlords.
That is why it is important that brokers and lenders do not treat every landlord client as though they are already a well-established operator.
For brokers, it reinforces the value of advice. Accidental landlords may not always know which questions to ask, or which risks they need to consider. A broker who can help them understand the implications of becoming a landlord, not just the mechanics of securing a mortgage, can play an important role.
For lenders, it highlights the importance of taking a rounded view of the case. It is not just about whether a borrower fits a product today, but about understanding their circumstances, experience and longer-term direction, especially when the market could change again quickly.
More generally, we must recognise that the buy-to-let market is no longer expanding in the same way it once did, and that means old assumptions need to be challenged.
Looking ahead, it is important we work hard to understand accidental landlords’ circumstances, goals and challenges if we to enable them to better establish themselves in the buy-to-let sector over the coming months and years.
