Landlords position for long-term growth

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The latest analysis of landlord purchasing behaviours highlights a more measured and strategic approach across the UK buy-to-let market. Over the past year, around 170,000 buy-to-let acquisitions were recorded, demonstrating continued confidence in the sector, even as transaction levels recalibrate from last year’s unusually high activity of more than 255,000 purchases.

This adjustment signals not a retreat, but a pause, as many landlords take a cautious and considered stance in light of evolving economic conditions and upcoming regulatory changes. Higher borrowing costs and legislative shifts are prompting landlords to evaluate opportunities more carefully, ensuring investments are future-proofed and well positioned for long-term growth.

Regionally, the market continues to show strong appeal. The East of England led activity with more than 23,000 purchases, closely followed by the East Midlands with just over 21,000. The South East also performed impressively with nearly 19,000 acquisitions. Together, these regions accounted for over 60,000 transactions, underscoring their enduring popularity with investors.

Other regions also demonstrated resilience. Both the South West and North West recorded more than 18,000 acquisitions each, supported by vibrant rental demand and diverse tenant bases. Even in areas where volumes were more modest – such as London, the West Midlands, and the North East – consistent levels of investment highlight the ongoing confidence landlords place in the private rented sector.

Industry experts note that the anticipated Renters’ Rights Bill has encouraged many landlords to take a “wait-and-see” approach, but the fundamentals of the market remain robust. Rental demand continues to exceed supply across most regions, particularly in key cities and university towns, ensuring landlords remain well-positioned for healthy yields and long-term capital growth.

Rather than signalling a slowdown, the current landscape reflects landlords’ adaptability and focus on sustainable investment. Once the details of new legislation are clarified, many expect renewed activity as landlords re-enter the market with greater certainty and purpose.

In short, buy-to-let remains a durable and attractive asset class. While transaction volumes are temporarily lower, the sector’s resilience, coupled with persistent tenant demand, sets a strong foundation for growth as the market adjusts to its next phase.