You don’t have to look far to find gloomy headlines about landlords exiting and regulation piling up. And yes, the bar has been raised. But “harder” is not the same as “hopeless”. The data and commentary through 2025 show a sector adapting and, for clients with a plan, still delivering solid outcomes.
What’s unsettling landlord clients right now
In a recent National Residential Landlords Association (NRLA) survey, landlords highlighted:
Policy uncertainty: The Renters’ Rights Bill was the single biggest hit to confidence with 24% of respondents said they are preparing to exit, with a further 24% waiting to see the final shape before acting. Your pipeline will include both camps.
Admin load: Making Tax Digital arrives for landlords with rental income above £50,000 from April 2026 (extending to £20,000 in 2028), introducing quarterly reporting and new software costs, a real planning issue for smaller investors.
Tax and running costs: Section 24 continues to bite with over half (54%) of landlords say they’re likely to sell more properties over the next five years if interest relief restrictions remain. Energy efficiency is another driver as about 49% hold at least some stock at Energy Performance Certificate (EPC) D or below, forcing capex decisions.
But the participation and profit picture is more resilient than the headlines
Profitability remains the norm: Paragon Bank research shows 87% of landlords reported a profit in Q2, up from 84% in Q1, underpinned by resilient demand and yields. Investors are still buying, just differently: Hamptons research found that investors purchased 11.3% of homes in Q3 2025, essentially flat year-on-year despite the second-home Stamp Duty Land Tax (SDLT) surcharge rising to 5% in April. The mix has tilted northwards to lower entry costs and stronger gross yields; in the North East, investors accounted for 28.4% of purchases in Q3.
A new cohort is entering: In the same research, Hamptons found that Millennials now make up around half of new shareholders in buy-to-let companies in England and Wales, with an estimated 33,395 millennial-led incorporations this year, more than double 2020’s tally. That’s fertile ground for first-time portfolio advice and Special Purpose Vehicle (SPV) education.
Rents look supported near-term: September’s Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey reports landlord instructions falling (net balance -38%, the weakest since mid-2020), while a net balance of +23% of surveyors expects rents to rise over the next three months and around 3% growth is anticipated over 12 months at a UK-wide level. Tight supply plus steady demand is still supporting revenues.
How we can turn headwinds into conversations
1) Build a business case for every purchase and refinance: Stress-test at realistic reversionary rates, not best-case initial rates. Budget for maintenance, compliance and, crucially, a ring-fenced EPC upgrade pot. Margin for error is a strategy, not a luxury.
2) Lean into geography, not habit: The activity shift towards higher-yield, lower-price markets in the North and Midlands is real. If a client’s “home patch” doesn’t stack up under today’s interest coverage ratio (ICR) hurdles, model alternatives where it does. This is where your sourcing plus local agent intel can materially change a client’s outcome.
3) Choose the right ownership structure: Many growth-minded landlords now use SPV limited companies to manage tax and lending flexibility. It isn’t one-size-fits-all and so always signpost independent tax advice, but for scaling portfolios it can simplify both borrowing and ongoing management.
4) Optimise the finance, don’t just secure it: With lenders active across 5-year fixes, trackers and hybrid options, model the total cost of debt: rates, arrangement fees, ICR tests and potential exit plans. Where the numbers justify, refinancing or using bridging finance to release capital for EPC works can beat funding capex from cashflow, shortening the upgrade timetable and protecting rental competitiveness. Also, the competition between lenders is fierce, so use that to your advantage.
5) Take a “steady, not spiky” approach to rents: RICS’ near-term rent outlook supports measured increases at renewal, balancing yield with occupancy and minimising voids. Help clients forecast the rent roll realistically rather than over-stretching to chase headline numbers.
6) Prepare clients for process changes early: Encourage clients to organise digital records now, pick compliant software, and diarise quarterly tasks. The same applies to keeping ahead of any NI changes and the final Renters’ Rights Bill text, scenario planning beats last-minute scrambling.
Strip away the noise and you’re left with a sector that rewards competence. The “accidental” approach that prospered in a decade of falling rates is over. In its place: evidence-led acquisitions, disciplined cashflow management and a clear plan for compliance and upgrades.
That’s how, even in a tighter regime, nearly nine in ten landlords are still in profit and why brokers who lean into modelling, structure and strategy will continue to unlock viable transactions for clients. Buy-to-let in 2025 is more regulated, more process-heavy and less forgiving of sloppy maths, but it is not dead.
Hiten Ganatra is managing director at Visionary Finance
