I took part in a panel session in London earlier this month with some of my lending peers, and it gave us all the opportunity to speak about where the buy-to-let market really stands, and more importantly, where it’s heading.
There’s a persistent narrative in some parts of the media that landlords are leaving the market in droves, and that the sector is under threat. That simply doesn’t reflect what we’re seeing on the ground.
PROFESSIONALISATION
What’s really happening is a professionalisation of the landlord base. Yes, some smaller, part-time landlords may be exiting. But the serious players, namely those running their buy-to-let investments as a business, are very much staying, and in many cases, actively expanding their portfolios.
This was a common theme during the panel. Emily Hollands from OSB highlighted that landlords are not just sticking around, they’re buying more property.
I echoed that from Fleet’s own experience we’ve seen a clear and growing appetite from portfolio landlords. There’s still a strong belief in property as a long-term investment, particularly when structured through limited companies. In fact, around 83% of the applications at Keystone, as David Whittaker noted, are now coming from limited company structures, with the average age of directors under 45. Hardly the sign of a market in retreat.
While some headlines may claim a ‘landlord exodus’, the truth is much more nuanced. As Hugo Davies at LendInvest pointed out, the headlines can be sensationalist. There is no mass withdrawal from the sector. Rather there’s a reshaping of the landlord profile and an evolution in how they approach their investments.
HMO GROWTH
That evolution is perhaps most clearly seen in the increasing popularity of HMOs. At Fleet, we’ve observed landlords diversifying their portfolios to include more HMOs, driven by the pursuit of stronger yields and better financial performance. I made the point on the panel that university towns in particular continue to offer attractive opportunities, but this is part of a broader trend toward higher-yield, more resilient investments.
HMO investment isn’t without its challenges – licensing, planning rules, and Article 4 directions can complicate things for both landlords and advisers. That’s why we’ve taken proactive steps to support this space. We recently launched our HMO Guide, designed to help advisers and their clients navigate these complexities. It breaks down licensing types, explains the impact of Article 4, and offers practical guidance on what to expect when entering the HMO market.
We’re also backing that up with product innovation. We’ve expanded our range of HMO and MUFB mortgages, including five-year fixed rates at 55% LTV and two-year and five-year options with £1,000 cashback, giving landlords more choice and support with upfront costs. These products are designed for professional investors and reflect the way the market is moving.
Of course, regulatory pressure isn’t going away. The Renters’ Rights Bill and EPC requirements are front of mind for many landlords, and they should be. These aren’t small changes. They require planning, a strategy, investment, and, above all, informed decision-making. That’s where advisers come in.
KEEP CLIENTS CLOSE
My message during the panel was simple: advisers need to stay close to their landlord clients. Even seasoned landlords can struggle to stay on top of all these changes, and also what is potentially coming down the road.
The adviser-landlord borrower relationship, built on trust, knowledge and regular communication, remains key to helping clients adapt successfully. Advisers who understand not just the client’s next property purchase but their entire portfolio and long-term goals will be best placed to thrive in this environment.
On the panel, we also spoke about first-time landlords entering the market. While barriers to entry are undoubtedly higher, there’s still growing interest from younger investors. Some of this is being driven by social media with platforms like TikTok full of property advice (of varying quality, it must be said), and that’s sparking curiosity in buy-to-let as a way to achieve financial independence.
As Emily from OSB rightly pointed out, investors can often be Googling their way through the various obstacles, regulation and legislation, but that’s exactly where advisers can step in with the professional support they need to succeed.
Technology also has a growing role to play in how advisers interact with these new entrants and existing clients alike. As Hugo noted, the market is seeing more tech-driven advisers, and machine learning and AI are beginning to support everything from affordability assessments to portfolio modelling. But however advanced the tools become, the fundamentals remain the same: advisers need to understand the market, the regulation, and their clients.
So, where does all this leave us? Well with a buy-to-let market that is clearly not in decline, but in transition. Professional landlords are leaning in, not stepping back. They’re diversifying, planning ahead and investing for long-term returns. They need advisory support that reflects that mindset.
