Landlords Remain Cautiously Optimistic

New figures from Lendlord’s 2025 Landlord Sentiment Survey reveal a striking paradox: 67% of landlords express concern about the upcoming Renters’ Rights Bill – currently heading to Report Stage in the House of Lords.

Yet despite that, 70% of landlords (and so there must be overlap!) intend to acquire buy-to-let properties over the next 12 months.  

20% of landlords in this survey, and 25% of landlords in a survey by Simply Business, have plans to sell this year (the Lendlord survey is more recent, perhaps notably) – but still, if 70% of existing landlords are looking to buy new rental properties, there is definitely hope for the market; and of course, that doesn’t account for new landlords entering the market, either (or the growing, commercially minded ‘Build-to-Rent’ sector that could definitely fill a lot of any void)

So what is it about letting homes that appeals so much to the Great British Investor?

This week, whilst so much news is about ‘what’s wrong with being a landlord’, we thought it would be good to offer a dose of ‘what is right’…

The Resilience of the Buy-to-Let Strategy

We know there are changes coming – and yes, of course we recognise that some of what is coming is going to take some getting used to and probably a bit of investment (from landlords, and from lettings and management agents like ourselves too); but this survey would seem to be saying that, despite the headaches, landlords generally still feel bullish and positive. Cautious maybe, but positive.

Here are a few points to think about:

Long-term rental market fundamentals remain strong

Even we find this difficult to take in, but according to data from the Lendlord survey, average rental yields were around 7.4 % over the first quarter of 2025. That is a national average of course; yields in London tend to average between 4% and 5% - but nevertheless, in either case, yields are still strong. In fact, buy-to-let lending is projected to hit £38 bn.  

When you consider the yield your money returns sitting in a UK bank account, the business case alone for letting out properties remains compelling – even in London!

Operational lettings strategies are evolving
There has been a noticeable shift of landlords moving from passive (and classic) ‘buy-and-hold’ strategies, to what we would call ‘active’ strategies:

29 % are adopting BRRR (Buy-Refurbish-Refinance-Rent) models – a strategy we know bore fruit for so many landlords in the 1990’s and early 2000s, but which many had said was done for as a strategy.

Investment in refurbishment adds value to properties, supporting premium rents, but also meaning that equity grows, which can be leveraged to release funds for a deposit on the next buy-to-let purchase.

Others are now looking at BTR – or that is to say, ‘Build to Rent’; definitely active rather than passive, as far as strategies go – and in fact the recent Spending Review gave many developers and investors in this particular sector much to be hopeful for.

Technology & PropTech adoption in the Private Rented Sector. 

Technological solutions are coming through, allowing landlords (those who take a moment to think about it) to find ways to navigate the changing market – and that includes whatever comes along with the Renters’ Rights Bill once it passes into law.

Whether it is technology that helps a property to let in the first place, or technology that helps landlords stay compliant – an ever-progressive part of this game, believe me – new options are appearing all the time to service the needs of the market as they arise.

And of course, this is also tech that lettings and property managing services like ourselves at Your Home Managed are already fully embracing.

Higher rental standards means opportunity for savvy landlords

Landlords willing to invest, ensuring decent standards, effective tenant support (for example through a dedicated managing agent like ourselves at Your Home Managed), and smooth rental journeys, can differentiate themselves and demand higher rents.  

Those who take a view that they are still in this for the long haul, rather than a quick buck, will thrive – even if compliance becomes stricter and legislation makes more demands of the industry.

Why Buy-to-Let Still Makes Sense

The findings of the Lendlord survey come as a surprise, but only because of the prevailing narrative surrounding the Renters’ Rights Bill. For landlords prepared to embrace change, the sector remains rewarding – and there are obvious reasons why:

Benefit	Description
Strong yields	7% and above returns outperform many asset classes – and even in London where yields average 4-5%, returns still look strong.
Long-term capital growth	Sustained price increases underpin equity gains.
Inflation hedge	Rents typically rise with or even above inflation, stabilising income.
Value-add potential	Refurbishment unlocks premium rental income and leverage opportunity.
Digital efficiency	PropTech reduces admin and streamlines compliance.
Tenant-retention	Higher-quality homes attract longer-term, reliable tenants.

A Visibly Changing Landscape… but Not a Retreat

Lendlord CEO Aviram Shahar was quoted in The Negotiator – a well know property industry magazine – summing up the results of the survey in the following way:

Landlords are recalibrating, moving smart and leveraging expertise, capital, and technology to navigate a complex market, but managing to extract from it true, lasting value.

Final Take

The Renters’ Rights Bill significantly raises the bar; nevertheless, buy-to-let remains a sound strategy for landlords who:

• 1. Recognise long-term rental demand and yield potential
  

• 2. Build buffer into financial projections for compliance and voids

• 3. Leverage PropTech to reduce administrative risk (or, indeed, choose a managing agent that does!)
  

• 4. Focus on providing quality homes and good tenant service

• 5. Follow legislative developments and prepare proactively
  

If the results of the Lendlord survey are correct, it shows that the lettings market is not dying; it is perhaps however maturing.  

Those willing to adapt can still enjoy more than steady returns and ongoing capital growth in the evolving UK rental landscape.

And if you are a landlord in South London and want to talk in more depth about the coming changes, but also the opportunities that are coming up, please get in touch with us here at Your Home Managed – we really would love to talk things through and show exactly what is possible.