The Mortgage Works’ latest Buy-to-Let Barometer report highlights a significant shift in landlord sentiment, with confidence in the Private Rented Sector (PRS) weakening compared with last year. At a time when regulation, taxation and interest rate pressures are dramatically altering the UK buy-to-let market, the findings suggest landlords are reassessing their portfolios, financing strategies and long-term plans.
Landlord Confidence in the Buy-to-Let Market Falls
According to The Mortgage Works:
- Confidence in individual lettings businesses has fallen from 37% to 29%
- Expectations for rental yields have dropped from 38% to 30%
- Sentiment around capital gains has declined from 17% to 13%
This downward trend reflects ongoing economic uncertainty, affordability pressures and regulatory changes impacting the buy-to-let sector. While rental demand remains strong across much of the UK, landlords appear more cautious about growth prospects in the short term.
Nearly Half of Landlords Plan to Sell in the Next 12 Months
One of the most striking findings from the Buy-to-Let Barometer is that 46% of landlords intend to sell at least one property, and only 5% plan to expand their portfolio.
This suggests a potential contraction in the private rented sector, as some landlords look to exit or reduce exposure.
Despite this, rent increases remain widespread. However, the proportion of landlords who have raised rents in the past year has fallen by 8 percentage points to 65%, indicating that rental growth may be stabilising. According to TMW.
Limited Company Buy-to-Let Continues to Dominate
The report also reveals a clear trend towards limited company buy-to-let structures.
Among landlords planning a purchase:
- 52% intend to use buy-to-let borrowing
- 74% plan to purchase via a limited company
In addition:
- 39% of leveraged landlords plan to remortgage or take a product transfer
- 19% of those remortgages will be completed within a limited company structure
This reinforces the continued shift towards special purpose vehicles (SPVs), driven largely by tax efficiency and portfolio structuring benefits. For landlords considering incorporation or restructuring their borrowing, specialist advice is increasingly important.
Portfolio Landlords Remain Significant Market Players
The data also shows that landlords now hold an average of 6.6 properties and average gross rental yield stands at 6.4%.
53% of landlords have at least one buy-to-let mortgage, and those with borrowing hold an average of 5.6 loans
This clearly shows that while sentiment may be softer, professional and portfolio landlords remain highly active and leveraged within the market.
What Does This Mean for the Buy-to-Let Mortgage Market?
The Mortgage Works (the buy-to-let arm of Nationwide Building Society)’s Buy-to-Let Barometer suggests the market is entering a phase of consolidation rather than expansion. There is a strong indication that there is currently a cautious approach to growth and landlords are focusing on increased portfolio optimisation.
There also appears to be a strong preference for limited company buy-to-let mortgages rather than sole private landlords.
And for landlords planning to sell, remortgage or restructure, timing and product selection will be crucial.
With 39% of leveraged landlords expected to refinance in the next year, competition for competitive buy-to-let mortgage rates is likely to remain strong.
Why Specialist Buy-to-Let Mortgage Advice Matters
Buy-to-let lending has become increasingly complex, particularly for limited company landlords, portfolio landlords in general, higher-rate taxpayers, landlords remortgaging multiple properties, and investors restructuring from personal to SPV ownership
As experienced buy-to-let mortgage advisers, we help landlords who need assistance with how to structure limited company purchases correctly, optimising borrowing across portfolios comparing remortgage and product transfer options, and assessing affordability under current stress testing rules.
Whether you are reducing your portfolio, refinancing, or exploring your next investment purchase, tailored advice can make a significant difference.
Thinking About Your Next Buy-to-Let Move?
With almost half of landlords planning to sell and many others preparing to refinance, 2026 could be a pivotal year for the private rented sector.
If you’re reviewing your buy-to-let mortgage, considering a limited company structure, or planning your next investment, our advisers at Oportfolio Mortgages are here to help.
We work with landlords across London and the UK, offering expert guidance in an evolving market. Give us a call today.
