More than a third of landlords intend to purchase additional rental properties over the next 12 months, while almost six in 10 expect to remortgage or take a product transfer when their existing mortgage deal ends, according to the latest survey from buy-to-let lender Landbay.
The Q3 survey, which was sent to more than 2,000 landlords, found that confidence in their own buy-to-let businesses had increased, with 28% expressing a positive outlook compared to 22% in the previous survey.
Meanwhile, the proportion holding a negative view of the wider UK economy fell from 69% to 65%.
However, sentiment towards individual businesses remained mixed, with the proportion expressing a negative outlook increasing from 37% to 40%.
Landbay said the findings showed landlords continuing to make decisions about investment, borrowing and portfolio management despite differing views on the economy and their own businesses.
Landlords continue to plan further investment
The survey found that 34% of landlords intend to purchase at least one additional rental property over the next 12 months, broadly in line with the 35% recorded in the previous survey.
Of those planning to expand, 17% intend to purchase one property, while 12% expect to buy between two and three properties.
A further 6% plan to purchase four or more properties, indicating that some landlords remain committed to increasing their portfolios.
However, 56% said they had no plans to purchase additional properties over the coming year, compared to 52% in the previous survey. A further 10% remained undecided.
The findings also highlighted differing approaches to portfolio management, with 43% of landlords saying they had no plans to sell properties over the next 12 months, while 39% expected to sell at least one property.
Landbay said landlords were continuing to assess their existing portfolios and make decisions based on their individual circumstances, rather than following a single approach to investment or disposal.
Rental income and yields continue to support portfolios
The survey found that landlords reported a range of gross rental yields, with 33% achieving between 4% and 5.9%, while 20% reported yields between 6% and 7.9%.
A further 14% reported yields between 8% and 8.9%, while 9% said they were achieving yields of 10% or above.
The findings indicate that some landlords continue to achieve higher returns, despite ongoing costs and wider market pressures.
Rental income also remains an important consideration, with 83% of landlords planning to increase rents over the next 12 months, compared to more than 75% in the previous survey.
The largest proportion, 38%, intend to increase rents in line with inflation, while 20% plan increases between inflation and 7%.
A further 10% expect to raise rents by less than inflation, while 14.5% intend to increase them by 7% or more.
Landbay said the findings showed landlords continuing to manage rental income and property costs in a competitive rental market, while seeking to maintain the financial performance of their existing investments.
Remortgaging and product transfers remain central to borrowing plans
The survey also highlighted the importance of refinancing, with 38% of landlords expecting to take a new product with their existing lender when their current mortgage deal ends.
A further 21% anticipate remortgaging to a different lender.
Just over a quarter remained undecided about their next move, highlighting that a significant number of landlords are yet to determine their future borrowing arrangements.
Mortgage interest rates were cited by 34% of respondents as the factor most likely to influence their decision, closely followed by the total cost of borrowing at 33%.
Product fees were the main consideration for 11%.
The survey also found a continued preference for fixed-rate mortgages, although the balance between different product terms appears to be changing.
Two- and three-year fixed rates were the most popular choice, selected by 46% of respondents, followed by five-year fixed rates at 41%.
Meanwhile, 10% said they would choose a variable-rate or tracker mortgage, compared to 6% favouring trackers in the previous survey.
Landbay said the findings highlighted the importance of providing advisers and their landlord clients with a broad choice of refinancing options, particularly as borrowers consider the balance between certainty, flexibility, affordability and the overall cost of their mortgage in a higher-rate environment.
The lender has continued to expand its remortgage offering across its Core, Premier and specialist ranges, with a selection of fixed-rate and tracker products designed to meet the requirements of different landlords, property types and portfolio structures.
It also continues to offer product transfer options for existing borrowers, giving advisers further opportunities to review clients' borrowing arrangements as their existing deals approach maturity.
Advisers remain highly valued by landlords
The survey reinforced the importance landlords place on professional mortgage advice, with 78% saying they would use the same adviser again for their next buy-to-let mortgage.
When asked which qualities they valued most in an adviser, 66% highlighted knowledge of buy-to-let mortgage pricing and criteria, while 60% pointed to access to mortgage products they could not obtain directly.
Almost half, 49%, valued strong relationships with lenders, while 48% highlighted quick response times and 47% clear communication.
Landbay said the findings reinforced the role advisers continue to play in supporting landlords, particularly when refinancing decisions involve a growing choice of products, different affordability requirements and increasingly varied property and portfolio structures.
“What comes through from these latest results is that landlords remain very much committed to the buy-to-let sector, even if confidence and investment intentions vary depending on individual circumstances," said Rob Stanton, sales and distribution director at Landbay. "It is encouraging to see an increase in those feeling positive about their own businesses, while more than a third still intend to purchase additional properties over the next year.
“Of course, these responses were gathered before last week's Budget, which has introduced a further increase in the tax on property income for landlords holding properties in their personal names, and it will be interesting to see whether this changes investment intentions or confidence levels as we move into 2027.
“One area which really stands out is the importance of remortgaging and product transfers, with almost six in 10 respondents expecting to take one of these routes when their existing deal ends, while a further quarter have yet to make a decision. This represents a considerable opportunity for advisers over the next six to 12 months, particularly given the depth and breadth of mortgage products now available.
He added, “At Landbay, we have continued to expand our range to provide advisers with a wider choice of refinancing options across Core, Premier and Specialist products, alongside our product transfer offering for existing borrowers. The changing preference between shorter-term fixes, five-year products and trackers is also interesting, particularly with this week's Bank Base Rate decision likely to influence expectations about the future direction of rates.
“As an intermediary-only lender, it is also positive to see the continued value landlords place on advisers, particularly their knowledge of mortgage products and criteria, and their ability to access options which are not available directly.
Stanton concluded, “With a significant volume of existing buy-to-let borrowing due for refinancing over the coming months and years, we believe remortgaging and product transfers will remain an incredibly important part of the market, and our focus will be on ensuring advisers have the product choice and support they need to help their landlord clients make the right decisions.”
