There has been no shortage of reasons for landlords to feel cautious over the past 12-18 months.
Political change, tax pressure, regulatory reform, shifting mortgage pricing and wider geopolitical instability have all combined to create an environment where confidence in the broader economy appears increasingly fragile.
Yet, despite that backdrop, the latest results from our landlord survey suggest something rather interesting is happening within the BTL sector. Landlords may be concerned about the direction and performance of the UK economy, but many still remain absolutely confident in their own ability to make their property investments work.
That distinction is important because it tells us a great deal about how landlord behaviour is evolving and, more importantly, where advisers can continue to add value.
Our recent landlord survey found 69% feel negative about the outlook for the UK economy. However, when asked specifically about their own BTL businesses, the results were considerably more balanced, with 41% describing themselves as neutral, 22% positive and 37% negative.
For advisers, that gap should not be overlooked. It suggests landlords are increasingly separating any economic and political concerns from the practical realities of running their portfolios.
Professional landlords are becoming more strategic
In many ways, these results reflect the continued professionalisation of the BTL market. Landlords today are operating in a very different environment compared to even five or six years ago. The combination of tax reform, regulatory change and tighter margins has pushed many borrowers towards a much more strategic and corporate approach to portfolio management.
The survey results support that view. More than half of respondents said they do not currently plan to buy additional properties over the next 12 months, but over a third still intend to add to portfolios. Selling intentions also remain relatively balanced, suggesting landlords are selectively reshaping portfolios rather than exiting the sector altogether.
At the same time, many continue to generate strong returns. A significant proportion reported gross yields above 4%, while a large number were achieving yields between 6% and 8% or higher. Those sorts of returns help explain why many landlords remain committed to the sector despite some of the more difficult headlines we have seen this year surrounding the economy.
Political uncertainty may continue to affect confidence
The wider economic concerns reflected in the survey are not particularly surprising. Alongside inflationary pressures and continued questions around interest rates, landlords are also having to assess the potential impact of further political uncertainty during the second half of this year.
Speculation around the future direction of the Labour Party, and the possibility of a leadership election over the next six months, has the potential to create further uncertainty around economic policy and fiscal direction. Financial markets rarely respond positively to instability around political leadership and that could continue to influence both swap rates and wider market sentiment.
For advisers, this is important because it reinforces why many landlords are prioritising stability and certainty in their financing decisions. The survey showed strong continued preference for fixed-rate borrowing, with two, three and five-year fixes remaining overwhelmingly more popular than tracker products. Despite the increased market discussion around trackers in recent months, only 6% of respondents said they would choose one for their next mortgage.
That tells us the vast majority of landlords remain focused on securing predictable borrowing costs in what could continue to be a politically and economically uncertain environment.
Advisers should focus on controllable factors
One of the clearest lessons from the survey is that advisers should increasingly focus conversations around factors landlords can actually control. Professional landlords understand there is very little they can do about political change, global events or wider economic turbulence. However, they can control how portfolios are financed, whether borrowing remains competitive and how efficiently properties are structured and managed.
This is where advisers continue to play an increasingly important role. The survey found more than 82% of landlords used an adviser from the outset when arranging their latest mortgage, while almost 10% initially attempted to arrange finance themselves before eventually turning to an adviser in order to complete the process.
That is a very telling statistic because it reflects how market complexity changes behaviour. In stable conditions, some landlords may feel comfortable arranging finance alone, particularly when refinancing existing borrowing. However, when pricing can shift quickly, products may be withdrawn and lender appetite changes rapidly, the value of professional advice becomes far more obvious.
The survey also highlighted how operationally complex the market can sometimes be. While close to 40% reported no issues with their latest mortgage application, significant numbers experienced delays, product withdrawals or the need to act quickly in order to secure pricing. Those are exactly the sorts of challenges advisers are best placed to help borrowers navigate.
Throughout the volatility seen earlier this year, lenders approached the market in very different ways. Some reduced appetite quickly or withdrew products altogether, while others like ourselves focused on maintaining product support, communication and operational consistency wherever possible.
That distinction increasingly matters because landlords are no longer focused solely on headline pricing. They also want confidence that products will remain available, cases will progress smoothly and we will continue supporting the market through periods of uncertainty.
Ultimately, what the survey shows is that landlords remain pragmatic about BTL, even if they remain cautious about the wider economy and potential political shifts. For advisers willing to stay close to clients, focus on long-term portfolio strategy and help borrowers navigate uncertainty, that should present a considerable opportunity throughout the remainder of 2026.
