Landlords finally get some goods news as buy-to-let rates drop

Landlords finally get some goods news as buy-to-let rates drop


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Buy-to-let fixed rates have dropped to their lowest points since September 2022 and choice rose to a record high.

It brings some temporary respite for landlords amid concerns about the Renters’ Rights Bill and tax changes.

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Data from Moneyfacts shows that average buy to let fixed rates over two- or five-years have dipped to 4.88% and 5.21% respectively.

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Overall buy-to-let product availability (fixed and variable) rose to 4,597 deals, its highest count on the data company’s electronic records (November 2011).

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Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Landlords looking to refinance or entering the market may be encouraged to see that buy-to-let rates have dipped to their lowest levels since September 2022, both for either a two- or five-year fixed term. Those landlords who locked into a fixed rate deal in 2023 and are due to refinance will find the average two-year fixed rate has fallen from 6.64% to 4.88%, and the rate has edged slightly lower than 5% since the start of June 2025 (4.98%).”

It comes as landlords are facing pressure from rental reforms though and potentially higher taxes.

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Springall added: “The cost of finance is a fundamental part of becoming a landlord, as tax changes over the years have led to a more challenging situation for investors to hit desirable profit margins. 

“The speculation on more changes to hit private landlords in the upcoming Budget will also lead to more concerns. Those who do not have buy-to-lets held in a limited company could get hit if National Insurance Contributions (NICs) are levied on pre-mortgage profits. Hamptons had previously estimated that a limited company would be the structure of choice for the next generation of investors. The growing number of set-ups will only escalate if the Government makes the NICs levy rumour a reality. 

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“The path for landlords remains uncertain, as many will be struggling to keep up with legislation, which can come at a financial cost and time drain to keep up with changes.”

Tags: Mortgages

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