Landlord behaviour is shifting away from expanding their buy to let portfolios, says Alex Upton of Hampshire Trust Bank.
He says this is despite the supply and demand imbalance remaining firmly in place, with renewed upward pressure on rents.
Upton comments: “Expansion is no longer the default strategy. Many smaller investors are reassessing exposure where returns have been eroded by taxation and regulation, and some are choosing to exit selectively.
“At the same time, more professional landlords are consolidating and repositioning rather than retreating.
“There is a clear move towards assets that offer stronger income resilience, including HMOs, semi-commercial and mixed-use property. Incorporation remains a consistent trend, but it introduces complexity around structuring, tax planning and long-term funding.”
He says this shift has a knock on effect in terms of the scale and type of borrowing required by landlords.
“[They] are not simply refinancing at maturity. They are releasing capital selectively, restructuring ownership, consolidating borrowing and adapting portfolios to reflect tighter regulatory requirements.”
And he adds that a sustainable rental sector depends on confidence and clarity.
“If policy, taxation and funding conditions continue to feel uncertain, investment decisions will remain cautious.
“Over time, that caution feeds directly into supply. Stability in the rental market depends on consistent signals and finance that supports long-term viability.”
This article is taken from Landlord Today