In an unexpected twist, Donald Trump’s return to the global stage with a fresh wave of tariffs could end up doing UK landlords a surprising favour.

Economists now expect UK interest rates to fall faster than previously thought, partly in response to the shockwaves from Trump’s tariff blitz.

The Bank of England is now predicted to cut rates three times this year instead of two. The first of those moves – a 0.25% drop from the current 4.5% base rate – is expected as soon as May, when the Monetary Policy Committee next meets.

While tariffs are rarely associated with good news for anyone, this shift in monetary policy could be a rare win for British landlords – especially the smaller, everyday investors who’ve been squeezed hardest in recent years.

LANDLORD LIFELINE

Data from our latest research at Black & White Bridging shows that 84% of landlords have been hit – some hard, some mildly – by the rising interest rates and the broader cost-of-living crisis.

The bulk of that pain hasn’t fallen on institutional players or wealthy portfolio owners, but on ordinary landlords: people who’ve scraped together to buy a second property or inherited a small rental unit and tried to hold on.

These are the landlords who’ve been caught in a pincer movement: rising borrowing costs on one side, and tighter regulations from the Autumn Budget on the other.

Many of them are seeing their margins vanish. In some cases, they’re being pushed out entirely.

As interest rates climbed previously – last rising in August 2023 – it became harder for these landlords to make the numbers work. Refinancing became risky. New borrowing became unattractive. And for tenants, that’s meant higher rents and fewer homes available.

CHANGING DIRECTION

Cheaper borrowing would take some pressure off landlords. Mortgage payments could come down, and refinancing could become viable again. For many smaller landlords, that could be the difference between selling up or staying in the game.

It’s also good news for Rachel Reeves, the Chancellor, who has struggled with the political fallout of high rates. A quicker-than-expected drop could give her government some much-needed breathing room—and possibly even help ease the housing crisis, at least at the margins.

MONEY, MONEY, MONEY

The shift couldn’t come soon enough. The UK property market is becoming a rich man’s game again. As regulations tighten and financing costs rise, average Britons are being priced out of property investment.

Corporate landlords and ultra-wealthy buyers are stepping in to fill the gap, with the scale to weather higher costs and complexity.

Lower interest rates won’t solve everything. But they could slow the churn – helping to keep some ordinary landlords from being pushed out.

HIGH CHURN

It’s worth noting that 16.28% of brokers surveyed say they’ve seen no significant impact from rate rises on landlords – yet. That’s likely due to the unique nature of the bridging market, where churn is high, and loans are typically short-term. But for the majority, the pressure is real. And in that context, cheaper money – even triggered by tariffs across the Atlantic – could offer a much-needed break.

In summary, landlords need to be supported, particularly the smaller, non-corporate entities who house clients, sometimes for the duration of their entire lives. These are the good guys, the backbone of the buy-to-let sector, but they’re also the first to be hit with interest rate rises. Hopefully, this can be a welcome boost to the sector.

Heather Hancock is head of credit & operations at Black & White Bridging