British landlords continue to faith in the market for buy-to-long (BTL), with a lot of planning to expand their portfolios in 2025. However, economic and regulatory uncertainties continue to damp their prospects, according to new research of financial solutions for the market.
The London-based lender has commissioned an independent study of 300 British landlords to gauge their sentiment compared to the BTL market and their plans for the next 12 months.
It discovered that 36% of the landlords are planning to expand their portfolios in 2025 compared to only 9% that are planning to reduce the number of BTL components they possess. Most landlords (54%) landlords expect house prices to rise in the coming 12 months, with 39% saying that they think the prices will remain largely the same.
Moreover, 43% of the landlords investigated said that they believe that the rental income would improve in the coming year.
Despite this optimism, however, the survey showed that affordability, economic instability and regulations remain remarkable concerns.
In particular, 41% of landlords are concerned about the ability of tenants to pay rent, 35% are concerned about domestic economic uncertainty and 28% emphasize global instability as a key factor that influences their portfolios.
Responding to the findings Market Financial solutions CEO Paresh Raja said: “It is encouraging to see landlords who express trust in the British buy-to-long market, where many want to actively expand their portfolios. This reflects the resilience of the sector and the constant demand for rental properties, despite a lot of speculation around landlords. However, the risks identified in our research show the need for landlords to prevent complacency in managing their portfolios.
He added: “New regulations, economic fluctuations and affordability problems for tenants will probably all play a role in shaping the investment strategies of landlords in the coming months. For lenders and brokers, the data serves as an important reminder that although interest rates are falling and improving market conditions, landlords continue to need support to make informed decisions about their portfolios. “