The Intermediary – September 2025 - Flipbook - Page 30
BUY-TO-LET
In focus
The buy-to-let mark
T
he buy-to-let (BTL)
market in 2025 is
showing signs of
steadier ground.
Interest rates have
begun to sele, and
regional yields remain competitive.
All the while, continued demand
from overseas buyers is adding further
momentum and giving landlords and
brokers more scope to plan beyond
short-term fixes.
Bank of
England
lowers the
base rate to
4% in August
Even so, the market is evolving.
Regulatory changes, shiing tenant
preferences and new approaches
to structuring investments are
influencing how landlords plan
for the future. Brokers who can
interpret these developments early
will be well placed to offer clients
valuable guidance.
Trends and conditions
Interest rates have finally stabilised
aer a turbulent period, with the
Bank of England lowering the base
rate to 4% in August. In response,
lenders have started to introduce more
competitive products under 3% – Molo
included.
For landlords, the question centres
around whether to act now or wait.
Locking in at today’s rates could secure
stability aer years of volatility.
If, however, inflation continues to
ease, there is a possibility of further
cuts. That makes timing a strategic
decision, particularly for investors
with remortgages due in the next 12
months. From a lender perspective,
a sustained period of rate stability
would likely encourage more
innovation in product design – from
flexible terms to targeted products for
Average gross
yields: 9.2%
in the North
East, 8.4%
MARTIN SIMS
is distribution director at Molo
data, with average gross yields of
9.2% in the North East, 8.4% in the
North West and 8.1% in Yorkshire
& Humberside. More affordable
property prices and strong rental
demand are driving factors. Cities
like Manchester, Leeds and Liverpool
remain aractive due to consistent
demand and healthy yields.
For landlords based in higherpriced areas such as the South East
or London, these regions can offer
a way to diversify portfolios and
improve overall returns. However,
buying further afield can bring added
management costs and complexities,
so investors should weigh up the extra
yield against the practicalities of longdistance ownership.
in the North
West, 8.1% in
Houses in
Lenders are
Yorkshire &
multiple
introducing
Humberside
occupation
more
competitive
products
under 3%
28
The Intermediary | September 2025
specific property types, as competition
heats up for both new purchases
and refinancing.
Regional shifts
Returns continue to vary across
regions. Northern areas are leading
the way, according to Lendlord
are providing
average gross
yields of
around 10%
