The Intermediary – August 2025 - Flipbook - Page 35
BUY-TO-LET
Opinion
Reading the
rental signals
I
f there’s one thing we know
about the buy-to-let (BTL)
market in 2025, it’s that
nothing stands still for long.
Our own ‘Rental Barometer’
for Q2 2025 highlights
this, and also draws aention to
the dynamic and – oen highly –
regionalised nature of the private
rental sector (PRS).
Now, with the release of the Office
for National Statistics’ (ONS) latest
UK rental price statistics up to May
2025, we have an opportunity to
cross-reference two powerful datasets
to beer understand what’s really
happening on the ground, and
to provide some insight into how
mortgage advisers can best respond.
The headline from our own data
is continued rental yield resilience.
Yields edged up to 7.5% on average
across England and Wales, up 0.1%
on the quarter, though marginally
down on an annual basis. The ONS
paints a similarly consistent picture,
reporting a 7% annual increase in UK
private rents to May. Both datasets
agree: rental income remains a key
pillar of buy-to-let viability, especially
as landlords continue to balance
capital growth ambitions with income
generation.
What’s interesting – and useful for
advisers – is how these two sets of data
complement each other. For example,
both Fleet and the ONS place Wales
at or near the top of regional growth
metrics. Fleet reports it as the highestyielding region this quarter at 9%,
while the ONS shows Wales’ average
rent prices leading with 8.5% rental
price growth – above the UK average.
Similarly, the North West scores high
across both sources, reinforcing its
status as a hotspot for strong yields
and solid rental inflation.
That alignment offers a level of
reassurance for advisers looking
to help clients assess long-term
investment potential. If the
independent ONS and a leading
buy-to-let lender such as ourselves
are both seeing upward movement in
rents and yields in the same regions,
that’s a robust signal. Interestingly,
the ONS includes both within-tenancy
and new tenancy increases in rental
pricing within its data, which gives a
strong catch-all picture, and clearly
highlights that in nearly all regions of
England and Wales, rental yield levels
are solid and continuing to deliver
what landlords are seeking.
So, what does all this mean for
advisers working with landlord clients
now and over the second half of 2025
and beyond? First, it reinforces the
need to look beyond the headlines.
Dig into the detail
Regional differences are clearly there
and must be taken into account –
whether in yield, rental growth or
property affordability – because
advisers have to understand how
unique that regional picture might be,
and consequently dig into the detail
when assessing borrowing capacity,
cash flow potential, and return
on investment. A client buying in
Manchester will face a very different
rental economics profile to one buying
in Milton Keynes or Cardiff, even if
the loan amount is the same.
Second, advisers should be ready
for questions about timing. With
the Bank Base Rate now at 4.00%
and Fleet’s average 2-year and 5-year
fixed rates down to 4.35% and 5.13%
respectively – both below the peer
average – many landlords are actively
reviewing their funding options
in a more competitive product
environment. Whether that means a
remortgage for beer pricing, a new
purchase to grow a portfolio, or an
exit from high-debt loans, advisers
need to be across product trends and
landlord appetite.Third, clients will
want context. They’re reading about
landlord licensing in Wales, and
Energy Performance Certificate (EPC)
deadlines in England. Many will be
LOUISA RITCHIE
is national account manager at
Fleet Mortgages
wondering whether to hold, grow or
exit. With Fleet’s data showing that
81% of applications are now through
limited company structures, and 55%
from landlords with four or more
properties, it’s clear the professional
end of the market is accommodating
all of this change and still expanding.
Advisers should be equipped to talk
about incorporation, long-term tax
efficiency, and how to use refinancing
strategically.
Fourth, advisers must be prepared
for more granular questions about
affordability. Clients will require
support recalibrating their borrowing
expectations or structuring deals
differently – perhaps releasing equity,
or transitioning into higher-yielding
property types such as houses in
multiple occupation (HMO) or multiunit freehold block (MUFB) properties
to maximise income potential.
Finally, advisers should know they
don’t have to do this alone. At Fleet,
we continue to deliver competitive
pricing, a growing range of products,
options and criteria, and a deep
understanding of landlord needs.
We continue to lend to the kinds
of experienced landlords and new
entrants who are shaping the next
generation of private rental provision.
We also provide transparent criteria,
consistent underwriting, and regional
insight to support every adviser
conversation.
In summary, the data tells us that
buy-to-let remains a complex but
opportunity-rich environment.
The ONS and Fleet numbers may
differ in places, but together they show
a market that is active, resilient, and
increasingly professionalised.
For advisers, that means staying
informed, staying proactive, and
above all, staying close to clients. ●
August 2025 | The Intermediary
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