The Intermediary – March 2026 - Flipbook - Page 44
BUY-TO-LET
Opinion
Are there still
opportunities?
I
t’s easy to see why confidence
in the buy-to-let (BTL) market
has been tested. Higher
interest rates, regulatory
pressure and rising operating
costs have forced many
landlords to reassess their position.
But stepping back from the noise,
one thing is clear: this is not a market
in retreat – it’s a market in transition.
And transitions create opportunity.
What we are seeing now is a clear
divide between reactive investors
and strategic ones. For the laer
group – supported by knowledgeable
brokers and specialist lenders – the
current environment offers real scope
to strengthen portfolios rather than
scale them back.
Price realism returns
For several years, pricing in
parts of the market ran ahead of
fundamentals. That imbalance is
now correcting. Motivated sellers,
particularly those under financial
pressure or lacking scale, are
bringing stock to market at more
realistic levels.
In our view, this is one of the most
significant opportunities landlords
have had in recent years. Quality
assets in established rental locations
are becoming available at values
that allow deals to stack up again –
provided investors can act decisively.
This is where brokers earn their
stripes. Access to lenders that can
move quickly, apply sensible stress
testing and focus on the underlying
strength of the asset is critical. In
a slower, more selective market,
certainty of funding has become a
competitive advantage.
Demand intensifies
Despite persistent headlines
questioning the future of buy-to-let,
rental demand tells a different story.
Tenant demand remains robust across
most regions, driven by affordability
challenges for buyers, population
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The Intermediary | March 2026
growth and a chronic undersupply
of housing.
In many cases, rental growth has
helped offset increased finance costs –
particularly for well-located, wellmanaged properties. The landlords
succeeding today are those who
understand their local market, price
appropriately and invest in quality
accommodation.
From a lender’s perspective, this
reinforces the importance of taking a
realistic, evidence-led view of rental
income rather than relying on blunt
assumptions. For brokers, aligning
clients with lenders who understand
the nuances of local rental markets is
more important than ever.
Another clear trend is the
continued professionalisation of the
sector. We are seeing experienced
landlords actively reshape portfolios:
selling weaker-performing assets,
consolidating borrowing and
reinvesting into stock that delivers
stronger yields or long-term
resilience. This isn’t contraction –
it’s optimisation.
Specialist lenders are well placed to
support this shi through portfoliolevel underwriting, limited company
lending and capital-raising solutions.
Brokers who move the conversation
beyond rate-chasing and into strategic
portfolio planning are becoming
indispensable partners to their clients.
Energy efficiency is strategic
Energy Performance Certificate (EPC)
requirements continue to dominate
discussion, but the most successful
landlords are already thinking beyond
minimum standards.
Energy efficiency is increasingly
tied to asset value, tenant demand and
long-term ‘leability’.
From our perspective, the
focus should be on supporting
improvement, not penalising
properties that haven’t yet reached
future thresholds. Lenders that take
a pragmatic view – recognising
ANDREW FERGUSON
is commercial director
– mortgages, BTL and bridging
at United Trust Bank
Quality assets [...]
are becoming available at
values that allow deals to
stack up again”
improvement plans and funding
works where appropriate – will play a
key role in helping landlords futureproof their portfolios.
This is another area where
broker insight and lender flexibility
can unlock deals that might
otherwise stall.
As competition intensifies in
the standard single-let space,
more investors are exploring
specialist property types such as
houses in multiple occupation,
semi-commercial assets and multiunit blocks. These assets demand
experience and careful structuring
– but they also reward it. Rigid
criteria struggle in complex scenarios.
Specialist underwriting does not.
Partnership rewarded
In my opinion, this market will not
be defined by who offers the lowest
headline rate, but by who understands
property investment in the real world.
Brokers are central to that equation.
For landlords willing to adapt –
and for brokers aligned with lenders
that value flexibility, judgement
and speed – this remains a market
full of opportunity. The challenge
is not whether opportunity exists,
but whether it is recognised and
acted upon. ●
