This year’s Budget, as we might have expected, has marked a line in the sand for the UK property and mortgage market, not least in terms of landlord borrowers and what the certainty they now have, might allow them to progress with in the months ahead.
Given the mood music prior to the Budget, there was always going to be a fear factor in terms of what policies might be announced which would increase costs for landlords, and of course, we had that in terms of the 2% rise in property income tax announced for those holding property in their individual names.
This will increase costs and reduce profit margin, and add more pressure. However, it also strengthens the view that more new purchases will be made through limited company vehicles in the future. The tax load is simply lower in those cases, and this will drive more landlords in that direction.
Some may even go further and look at moving existing homes into their limited company. We know this has a stamp duty cost, and the extra surcharge still applies, but at least the Budget did not move that particular dial. For some, it might be a cost worth taking on if the long-term saving is clear.
Time to plan before new tax rules bite
One detail worth stressing is around timing. The 2% property income tax rise does not hit landlords until April 2027. That gives some time. It provides landlords with space to think through their plans, speak to advisers, and decide how they want to shape their portfolios.
With this time, landlords can also review rents. Some may feel they need to adjust them in the coming months, and having a clear window before the tax change can help with that planning.
But tax is only part of the picture. The Renters Rights Act (RRA) also kicks in from May. It brings new duties, and landlords will need to act fast to meet them. While the time to prepare is short, it is still enough for landlords to look at their current stock, review costs, and make any changes they feel are needed.
Taken together, these points add up to something important. Even with these new rules, landlords are likely to feel they have clearer ground under their feet than they did before the Budget. And when there is more clarity, we tend to see more activity. The result is often more demand, more purchases, and more remortgage business.
Helping advisers respond to growing demand
With this likely rise in activity, lies a clear opportunity for advisers. Landlords will look to you to help shape their plans, factor in these changes, and understand new rules. For this reason, it matters that advisers have a full set of tools to work with and they have strong relationships with lenders who can support them with choice, speed and fair pricing.
At Landbay, we want to play our part. We have made a number of changes recently aimed at giving advisers a stronger product offering to work with. The recent rate cuts to a number of products in our Premier range mean more competitive pricing across our standard products for landlords with up to 15 homes; this covers new cases, product transfers and like-for-like remortgages. The aim is simple: sharper rates across different fee options providing more competitive, clear options.
We have also added new products in more specialist areas. New small MUFB holiday let products sit in a space where we have seen rising interest. Many landlords are seeking diversification to generate higher yield. Some want more flexible use. Small holiday let blocks can offer that, and demand has been building. The new two- and five-year fixes help advisers place these cases while offering rate and fee choices that suit different needs.
We have also added an overpayment feature which allows landlords to make up to 5% overpayments each year. This gives borrowers more control at a time when many want flexibility to reduce debt when they can.
Why this matters for advisers in the months ahead
Moving into next year, at this stage it feels like early 2026 will be shaped by two elements. Firstly, landlords have more certainty after the Budget. Secondly, the RRA will change how they run their homes. Many will now rework their plans. Some will shift into limited companies. Others will adjust rents. Many will review their finances.
Advisers will be central to this. You therefore need a wide set of products that cover both simple and more complex cases. You will also need lenders who offer clear criteria, fast decisions and rates that match the needs of today’s landlord clients.
This is why we continue to improve our range and pricing. The mix of rate cuts, new products, flexible features and clear product sets is designed to support advisers who are seeing more landlords ready to act.
Landlords want clarity. Advisers want choice. Our aim is to help deliver both.
Rob Stanton is sales and distribution director at Landbay
