The Intermediary – August 2025 - Flipbook - Page 34
BUY-TO-LET
Opinion
A crucial final four
months of the year
A
ugust’s base rate
cut by the Bank of
England’s (BoE)
came at an opportune
moment, promising
to stimulate activity
across the UK property market. It will
likely provide a shot in the arm for
the market as it reawakens from its
summer slumber.
Speculation remains – of course
it does – about how many more cuts
we will see this year. The BoE meets
three more times before Christmas.
For now, however, the base rate resides
at a two-year low, and borrowers will
have been pleased to see the Monetary
Policy Commiee (MPC) act.
In the buy-to-let (BTL) space, lower
borrowing costs will help soothe
the transitionary pains that many
landlords have been experiencing
under the new Labour Government
over this past year.
Keir Starmer et al inherited a BTL
sector that has faced a huge range
of changes and challenges over the
previous decade, but a lack of clarity
across a ra of policies have prevented
a smooth transition.
Not all doom and gloom
As noted, a falling base rate will go a
long way to allaying concerns around
policy and regulation.
Moreover, the performance of
the property market itself paints a
positive picture for BTL investors; the
average UK house price, for instance,
reached £298,237 in July 2025, a 2.4%
uptick from a year before. Zoopla
data, meanwhile, shows that rental
prices have grown 21% over the last
three years.
Clearly, it’s not all doom and gloom,
as so many headlines would have
brokers and BTL landlords believe –
and recent data underlines this point.
Indeed, a survey of more than 2,000
private landlords in England by the
TDS Charitable Foundation found
that 23% have increased the number of
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The Intermediary | August 2025
properties they rent out over the last
year, up from 19% in 2024.
Fundamentally, the market is in
rude health, and while rising property
prices and elevated borrowing costs
– at least compared to the historic
lows of 2008 to 2021 – continue to
place a squeeze on landlords from an
affordability perspective, there are
still opportunities across the country
for those looking to start or grow a
BTL portfolio.
Final four
On top of the BoE’s next three
meetings, there is another key event
approaching: the Autumn Budget.
The date of the Budget has not
yet been announced – at the time of
writing – but it is likely to land in late
October or early November. While
I would not expect fireworks, it will
undoubtedly be a hugely important
and influential announcement.
When Chancellor Reeves delivers
her Budget, her party will have had
some 16 months in power – enough
time to fully assess the state of the
economy and the public coffers. This
will be her – and Labour’s – chance
to truly put their stamp on this
Parliament. The property market is
almost certain to feature prominently
in her speech.
The are issues that landlords, and
their brokers, will want clarity on:
PARESH RAJA
is CEO at Market
Financial Solutions
non-dom reforms, planning laws,
housebuilding investment, Energy
Performance Certificate (EPC)
regulations, Capital Gains Tax on
property investments, and of course
any further tightening of rules
governing the private rented sector
(PRS) and holiday lets market.
Hopefully the Budget addresses
most, if not all, of these important
policy areas, which have been in flux
in recent years thanks to a series of
bold claims, promises and u-turns.
As ever, lenders and brokers will
have an equally important role to
play. Siing and waiting for decisive
Government action is seldom a wise
move; lenders must instil confidence
in the market through competitive,
flexible products, while brokers will
need to provide that additional layer
of support to clients to help them
navigate both political and economic
shis in the months ahead.
Combined, this will ensure that
BTL investors – both current and
prospective – can act with confidence,
and this ought to allow the market to
enjoy a strong end to 2025. ●
Autumn brings the chance for certainty in areas previously in flux for landlords
