The Intermediary – December 2025 - Flipbook - Page 33
A YEAR IN REVIEW
Feature
profiles and manageable entry costs. Across the
terms of policy for landlords in 2026.”
wider UK market, however, activity has slowed as
the year draws to a close. In particular, Sexton
The hope is that monetary policy may finally
begin to align with that need. A more supportive
notes that “the gumming-up of the property
rate environment could unlock long-suppressed
market at the end of the year was not an ideal
demand, particularly among buyers who spent
trend to observe.”
much of 2025 on the sidelines.
He adds: “We want a thriving transaction
Reflecting this expectation, Luxmore predicts
market as much as our partners in broking,
that “we should see at least two base rate drops
conveyancing and estate agency.”
before the end of 2026, and with
Yet even amid this cooling,
several segments have
continued to demonstrate
notable resilience. According
this in mind we might see
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some of the market unlock
a little and start to see more
refinance activity.”
to Mason: “Residential lending
Her point underscores the
showed the strongest resilience,
dynamic ahead: lower funding
supported by pent-up demand
costs may provide momentum,
and a backlog of buyers who
but a crowded lending
had been waiting for rates to
landscape will continue to
settle down.”
place pressure on margins and
service levels.
He also notes that
For many lenders and
remortgage activity was a
key driver of business, as
brokers, opportunity in 2026
thousands of fixed deals from
will hinge not simply on
previous years matured.
Meanwhile, certain
AT A CROSSROADS
Navigating the future of green buy-to-let
macroeconomic tailwinds, but
on execution.
With pricing
specialist sectors continued
competitiveness tightening
to outperform, as property
investors attempt to actively shape returns
and regulatory expectations rising, disciplined
through operational improvements or value-add
structuring and risk management will remain
strategies.
essential. Daly says: “Identifying the right deal
Davies notes that LendInvest has seen
“increased demand for retrofit, conversion
and HMO-driven supply,” as “the biggest
and appropriately de-risking it is key to success.
The coming year is expected to bring further
political uncertainty, another budget cycle, and
opportunities lie in a broader refinance wave as
increasing pressure on the Government, all of
rates continue to normalise.”
which are likely to fuel continued hesitation
2026 predictions
Looking ahead, the outlook for 2026 carries
across the market.”
He continues: “While interest rates appear
broadly on a downward path, external shocks,
a now familiar sense of measured optimism.
such as a correction in inflated AI-driven share
After a year defined by recalibration rather
prices or renewed global instability, could easily
than acceleration, many in the industry believe
shift sentiment.
the groundwork has finally been laid for a
“Nevertheless, the core opportunity lies in
more active market, albeit provided the right
maintaining activity and identifying deals that
conditions emerge.
deliver strong risk-adjusted returns.”
Expectations of further rate reductions and the
In all, this is a fitting conclusion to a year
possibility of easing inflation point toward the
that was neither one of runaway recovery nor
potential for a healthier pipeline next year. But
sharp decline. Instead, 2025 became a period of
that optimism is conditional, and much depends
stabilisation and selective growth.
on the return of economic and policy stability.
This desire for a steadier operating
environment is a recurring theme across the
sector. Ganatra says: “I think we would all like to
Lenders remained competitive, borrowers
resilient, and brokers more central than ever to
consumer strategy.
Heading into 2026, the sector is on a firmer
see some certainty and consistency, especially
footing than it was a year ago, even if the balance
for landlords. Property is a long-term investment,
remains delicate.
and even more so now, as short-term gains have
In the words of Mason: “2026 has the potential
become less likely with the various measures
to be the first genuinely growth-oriented year
put in place by both Conservative and Labour
we’ve seen in some time, provided the economy
Governments. I hope we see greater certainty in
is relatively stable moving forward.”
December
2025 | The Intermediary
The Intermediary
| July 2023
31
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