The buy to let landscape and what this means for professional landlords

The buy to let market has changed significantly since 2022, driven by rising interest rates, stricter affordability checks and higher operational costs. Professional landlords who rely on leveraged portfolios have had to adapt their strategies, particularly as lender criteria and economic conditions continue to evolve. This updated overview covers the key shifts in the market and what they mean for experienced property investors.

The Bank of England Base Rate and its impact

Since 2022, the Bank of England has increased the base rate multiple times to tackle inflation, with the effects sharply felt in the mortgage market. Specialist lenders were initially slower to withdraw products than high street banks, but by 2023 the entire sector had repriced. Although rates softened slightly in late 2024, current products remain higher than the historically low levels seen before 2022.

For professional landlords with multiple mortgaged properties, these increases have become a core part of long term business planning. The cost of borrowing is now a central factor in portfolio strategy, influencing decisions on remortgaging, selling lower performing units and reassessing geographical focus.

Rising running costs for HMO landlords

The squeeze has been felt most by landlords operating HMOs. Higher mortgage rates have combined with substantial increases in utility prices over the last few years. Because energy is often included in HMO tenancy agreements, landlords have had limited flexibility to pass these increases directly to tenants.

Some have responded by improving insulation, adding smarter energy controls and reviewing room rates, but the overall cost of managing HMOs has unquestionably risen. Despite this, demand for shared accommodation remains strong in many university towns and major employment hubs.

Are landlords selling up?

Between 2022 and 2024, many letting agents reported a split trend. Experienced landlords with long term portfolios were more likely to consider selling one or two properties to reduce debt or release equity. Meanwhile, newer investors continued to enter the market to take advantage of strong rental demand.

This trend has continued into 2025, with landlord sales stabilising but remaining above pre 2020 levels. The decision to sell often depends on property performance, region and long term investment goals rather than market sentiment alone.

How rents have changed since 2022

According to ONS and rental platform data, rents have risen considerably since 2022, but increases have varied by region. After a period of modest growth in 2021 and 2022, the years that followed saw sharper increases driven by demand, reduced supply and affordability pressures.

• National rents have risen steadily across 2023 and 2024, with many regions seeing above average increases.
• London rents recovered strongly after a slow period in 2020 and 2021.
• Demand in the Midlands, North West and parts of Scotland remains high due to local employment growth.

Despite rising rents, practical affordability limits still apply. In many areas, rent levels are now at or near the maximum that tenants can realistically sustain, meaning landlords cannot rely solely on rent increases to offset higher mortgage costs.

A key question many landlords are now asking is whether rising costs are directly driving rental increases. Our analysis on whether buy-to-let taxes actually put up rents explores how tax changes have influenced landlord behaviour and pricing across the market.

Portfolio strategies for the changing market

Long term landlords, particularly those with 30 years of experience or more, have been reassessing whether to hold, sell or reinvest. Strong house price growth between 2020 and 2023 created opportunities to exit weaker assets. Meanwhile, areas with robust rental demand and higher yields remain attractive for landlords looking to reallocate capital.

Location is more important than ever. While some major cities face slower rental growth due to affordability constraints, regional towns and commuter areas continue to offer strong yields and consistent demand from tenants.

Why reviewing mortgage options early is crucial

We continue to advise landlords whose mortgage terms are ending within the next 12 to 18 months to begin reviewing their position now. Even slight movements in rates can have a significant impact across a portfolio.

When reviewing your next steps, consider:

• Your ERC and whether early remortgaging could mitigate future rate rises.
• The long term benefits of securing a five or even ten year fixed rate.
• Stress tests, affordability margins and rental coverage under updated lender calculators.
• Whether selling a low yield property could improve overall portfolio strength.

Planning ahead provides far more certainty than waiting until the final months of your term when rate changes may reduce your available options.

Independent buy to let advice from Vincent Burch

We are an independent whole of market Buy-to-Let Mortgage broker, supporting landlords with tailored advice on portfolio lending, HMO finance, limited company structures and long term strategy. With thousands of buy to let products available, we help you make informed decisions that align with your goals.

Call us on 01603 340644 to discuss your plans.

The content on this page is provided for general information only and does not constitute personalised mortgage or financial advice. Mortgage eligibility, rates and criteria vary between lenders and are subject to change. You should seek tailored advice based on your individual circumstances before making any financial decisions.
Vincent Burch Ltd is authorised and regulated by the Financial Conduct Authority.