Stamp duty shockwaves fade as landlords get set to expand

There are always those ready to take a pessimistic view of the buy-to-let (BTL) market, keen to highlight its challenges. Yet time and again, the sector demonstrates its resilience, bouncing back stronger from every obstacle. Recent data from UK Finance underlines this, showing that opportunity is very much alive and ambitious landlords are seizing it.

In its latest market update, UK Finance reported that in Q1 2025, the BTL market saw a 38% increase in loans by quantity and a 46% increase by value compared with Q1 2024. Average rental yields are up, while average interest rates fell by 10 basis points from the previous quarter. This has lifted ICRs and opened up more breathing space in stress testing, which is exactly what landlords and brokers have been waiting for.

At Landbay, we've seen this confidence translate into a rise in new applications and growing demand for product transfers as landlords look to refinance efficiently. Affordability pressures are beginning to ease, and innovation in lending criteria is giving brokers more options to unlock borrowing potential for their clients.
 

Products for every landlord

We've introduced three simplified product sets – Premier, Core, and Specialist – to make navigating the market clearer and more flexible for brokers.

• Premier supports straightforward cases, with competitive rates and simple SPV options for landlords with up to 15 properties.
• Core provides professional solutions for individuals and portfolio landlords, with access to AVMs and wider limited company structures.
• Specialist caters for the more complex end of the market, including holiday lets, HMOs, MUFBs, and trading companies.

By aligning our proposition in this way, we've equipped brokers with the tools to match the right product to every landlord scenario, whether that's refinancing a small portfolio or scaling up into more specialised property types. This breadth of choice helps ensure landlords can take advantage of today's improving conditions.
 

Landlords planning to buy

The appetite is clear. According to our latest landlord survey, 52% of landlords plan to purchase properties in the next 12 months, a leap from just 27% in the immediate aftermath of the Autumn Budget's stamp duty hike. Many landlords now view the additional cost as something to negotiate into deals, while others are diversifying into regions such as the Midlands and the North of England.

What's also telling is that over half of landlords planning to buy are focusing on properties that will require minimal work to meet future EPC standards, demonstrating foresight and resilience in the face of looming regulation.

Challenges on the horizon

Of course, the sector is not without headwinds. The Renters' Rights Bill remains a potential disruptor, while speculation of a new tax raid – potentially National Insurance applied to rental income – could place fresh pressure on smaller landlords. If realised, this may accelerate the professionalisation of the sector, with even more landlords turning to limited company and SPV structures.
 

Resilience remains

Yet landlords continue to stand firm. Nearly 60% told us they have no plans to sell properties in the next 12 months, a sharp rise from post-Budget sentiment. While some naturally look to rebalance or scale back, the prevailing picture is one of growth and commitment.

At Landbay, we aim to support this resilience by ensuring brokers have access to competitive rates, a clear product structure, and expert support. Whether helping landlords refinance with ease or equipping them to expand confidently, our role is to provide the clarity and solutions that keep the market moving.

Perhaps it's that "bouncebackability" – landlords' ability to adapt, innovate, and endure- that keeps them in the spotlight of policy debates. But their importance cannot be overstated. The UK housing market relies on landlords to provide good-quality rental accommodation, and the signs show they are ready to deliver.