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Revealed - How Landlords Have Cut Costs in Challenging Times

Many buy to let landlords have made financial changes during the cost of living crisis to mitigate the rising costs of operating private rental units, including renegotiating mortgage finance, increasing rent or selling property.

That’s the claim in the latest Landlord Trends report, carried out by Pegasus Insight for Foundation Home Loans.

Landlords were asked to identify the changes they had made over the past 18 months: 30% said they had renegotiated their mortgage with their existing lender; 29% had increased rents; 25% had cancelled plans to purchase additional units; 22% had remortgaged to another lender; 15% had paid part of their monthly mortgage payment from savings or other non-rental sources; and 15% said they had sold a property to reduce outgoings.


One in six landlords now carry out more property management themselves in order to cut costs, while 8% had stopped using letting agents completely. 

The research, comprised of 774 online interviews with landlords, was undertaken between March and April this year.

Foundation Home Loans director of sales Grant Hendry says:  “While we have seen rates come down off their 2023 highs, there will still be large numbers of landlords who are coming to the end of their current deals, and are looking for solutions in order to keep down any mortgage-cost increases.

“It’s clear this presents a real opportunity for advisers in the buy-to-let space, not least because a significant minority are still opting to go direct to their lender, rather than review what is available across the entire market. Plus, a number feel they are getting ‘advice’ in doing this, which may support their understanding of the rate type, but does not open them to what’s available from other lenders.

“It clearly remains challenging times for landlords but they are maintaining the profitability of their portfolios, yields continue to rise, plus there remains strong tenant demand against a backdrop of relatively low supply and higher population numbers seeking housing.”

Just over 40% of landlords said they would remortgage or opt for a product transfer this year; 49% said they had one mortgage to refinance, 24% had two, 11% had three, 7% had four, while 9% said they had over five mortgages due for refinance in the next 12 months.

Some 68% said their most recent mortgage had been negotiated through an adviser; this figure rose to 72% for portfolio landlords. 

And some 26% of landlords had arranged their most recent mortgage direct with a lender, 3% had done so via an online broker or a robo-advice platform, while 1% had used a comparison website.

Hendry concludes: “Advisers can clearly play a vital and pivotal role for them, and our survey numbers suggest there are still a significant number of landlords who are not using the services of an adviser, and therefore missing out on a raft of product options, not forgetting the protection that comes with advice.”

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  • Sarah Fox-Moore

    A Landlord selling their *property is not a Landlord making "changes" to their business, it is a Landlord getting OUT and no longer being a landlord!

    [*sure, some landlords with multiple properties are selling one or more to pay down the mortgage/s on the others, but still, its less properties in the PRS]

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    25% had cancelled plans to buy additional units. The other 75% had no plans to buy anyway!😉

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    Exactly who would consider investing now the PRS is being killed off. I could afford to buy more but now invest in the stock market.

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    I agree Margaret ,
    Its difficult to see what Labour Plans are so I googled it and I came across a report from Goodlord . Concerning Renters Reform Bill , and mentions Labours Plans .
    No cost or fine is enough for the Powers that be to impose on PRS Landlords .
    All of them are anti Landlord , Costly .
    A few of them
    Landlord Portal , So Councils and Government can fine and Regulate more easily signs us up to £30000 fine for most things , (This is my interpretation of my understand of the suggested reforms ).
    Decent Home Standard , You declare its Ok Tenant wrecks it £ 30000 Fine ( False Statement)
    Kitchens less than 20 years old not acceptable
    Rent Repayment orders increased to 24 month
    End to Automatic Evictions for Rent Arrears
    Warm Homes to C Implemented for properties (removal of Cost Cap )
    Rent Controls , ( No regards to Interest Rate /cost Rises)
    4 Month Notice Period
    £30000 for false statement on Register ,
    Not being able to get your Property Back ever .
    I can see Investors queuing up to invest in PRS .


    And Labour has in the last couple of days reaffirmed that Section 21 will go immediately when they take office.


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