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Buy-to-let is back: why landlords are feeling confident

Mortgages 5 min read 24/03/2025

With rising property values and stronger yields, 2025 is looking positive for the PRS, says, Jon Cooper, director of mortgages at Aldermore.

Landlords have faced nearly a decade of tax squeezes, rule tightening and new regulations, and there’s more to come with the Renters’ Rights Bill looming large.

Despite this, many are bullish about buy to let as the underlying fundamentals for the sector are looking strong.

Demand for rental homes remains high, outstripping supply, according to ARLA Propertymark, which said there were seven people for each available property in December 2024. Rents were also up 9% compared to a year earlier and void periods were down, leaving many landlords optimistic about the future.

 

Buy-to-let customer with broker

Buoyant buy to let 

In our regular landlord survey*, Aldermore asked 500 landlords in January how their portfolios performed last year and their thoughts about the future.

We were encouraged by the confidence and positivity reflected in their responses, which belied the gloomy narrative we often read about.

Despite the Renters’ Rights Bill, potential EPC changes, the 5% stamp duty surcharge, and mortgage rates proving sticky, landlords remain pragmatic about these challenges and optimistic about overcoming them.

Landlords reported increased property values and yields, fewer said they were considering leaving the market and more than half said they would recommend buying property to let.

  • Increased property values: over half (58%) of landlords reported a rise in property values over the past 12 months, including 11% that have seen a ‘significant’ increase.
  • Stronger rental yields: more than half (51%) noted improved rental yields, averaging a 7.7% rise.
  • Rents rising: Rents are still going up, by 12.4% on average, but fewer landlords are increasing them. Over four in five landlords (83%) raised their rental prices in the past year, compared to 94% in 2023.
  • Positive sentiment: Two-thirds (64%) think that being a landlord remains a good way to make money, 56% would recommend it as an investment opportunity, and 51% are optimistic about the future.
  • Fewer landlords leaving: only 31% of landlords are now considering leaving the sector, a significant drop from 48% in 2023, showing increased confidence in the market.
  • Landlord adaptation: Over a third (36%) have considered restructuring their portfolios to mitigate rising costs, with one in five (19%) setting up limited companies to improve tax efficiency in the last year alone and another 8% planning to.

 

Commitment to quality

Our survey also revealed a clear commitment from landlords to make sure they provide good-quality rentals.

From doing repairs and ensuring safety standards to their support of the Decent Homes Standard, overall landlords are clearly dedicated to providing good housing for tenants.

  • Maintaining safety: nearly nine in 10 landlords (89%) organise the repairs and maintenance for their properties, from installing smoke alarms to ensuring electrical safety.
  • Supporting the local economy: 86% of landlords hire local tradespeople for renovations and repairs, contributing to the local economy and ensuring a quick and knowledgeable service for tenants.
  • Easy to contact: 59% of landlords say they make sure they are easily contactable in case of emergency.

This commitment to quality not only benefits tenants but also strengthens landlords' reputations, fosters longer-term tenancies, reduces void periods and cuts costs. Maintaining the quality of the property also helps retain and even increase its value, making it a win-win.

 

Renters’ perspective

We also spoke to 2,000 private renters** to get their perspective on what landlords were doing well, what makes a good landlord and how they could improve. The results were generally positive, reflecting the fact that the majority of landlords are doing their best to support tenants.

  • 63% said their landlord is easily contactable for issues.
  • 77% described communication with their landlord as good, including 34% who said it is very good.
  • Being responsive is the most important feature, according to renters, cited by 52%. However, 64% said that slow or ineffective problem resolution is an area landlords could improve on.
Person talking in office

How brokers can support landlord clients 

The majority of landlords work hard to provide their tenants with good-quality accommodation and to manage current pressures.

They need your support to minimise finance costs and help them raise funds with competitive mortgage options, as well as help them navigate the continual stream of market and regulatory pressures.

Of course, the latter isn’t your responsibility but by making sure they are up to date with the looming changes, such as the Renters’ Rights Bill, you can help them understand how they’ll be impacted and where they can adjust their strategy if needed. And this builds trust.

Aldermore can help by keeping you up to date with key regulatory changes as well as giving you market updates about the private rented sector, buy to let market and the wider economy, so you can position yourself as a trusted source of knowledge.

Our competitive mortgage products can help your clients minimise their outgoings and we’re on hand to support brokers with straightforward and complex cases.

With the right support, landlords are ready to meet the challenges ahead and maximise the opportunities of the constantly changing private rented sector.

The future’s bright for buy to let, and brokers have a key role to play in supporting landlords.

 

How Aldermore can help 

We back brokers and landlords to achieve their goals and we’re ready to help. Contact your BDM or take a look here to see what we can do for you and your clients.

* Research conducted on behalf of Aldermore bank by Opinium Research between 7-14th January 2025 among 500 UK Landlords.

** Research conducted on behalf of Aldermore bank by Opinium Research between 7-14th January 2025 among 2,000 UK private renters.

 

Aldermore buy to let mortgage intermediaries