The Intermediary – September 2025 - Flipbook - Page 31
BUY-TO-LET
In focus
et so far in 2025
US and
Canadian
buyers
now make
up 16% of
Overseas investors
International interest in UK property
remains strong. Buyers from North
America and the Middle East remain
a key part of the market. US and
Canadian buyers now make up 16%
of international enquiries, while
investors from the Middle East
account for 14%, oen motivated by
long-term relocation plans.
international
US investors
enquiries
made up 6.9%
Landlords adapting
Changing tenant expectations are
shiing the types of properties
landlords look to invest in. Houses in
multiple occupation (HMOs) continue
to perform strongly, with average
gross yields around 10% , and oen
higher in regions like the North East.
Brokers may see more landlords
seeking finance for HMO conversions,
particularly in high-demand areas
where shared housing can outperform
standard rentals.
Suburban and semi-rural locations
are also gaining traction, driven
by ongoing demand for space and
greenery linked to hybrid working
lifestyles. In some commuter towns,
demand is pushing prices up, and
investors will need to assess whether
projected rents can still justify higher
entry costs.
Investors from
the Middle
East account
for 14%
of purchases
in early 2025
Liverpool and Manchester are
drawing particular aention from
overseas buyers, who are looking for
value and yield. A weaker pound also
increases affordability for foreign
buyers. This is especially true if UK
interest rates fall further.
It means areas like Prime Central
London could be on the map – it
already remains popular with US
investors, who made up 6.9% of
purchases in early 2025.
Regulatory changes
The proposed Renters’ Rights Bill,
which includes plans to scrap Section
21, continues to shape landlord
behaviour. Some may choose to
exit the market if they feel tenant
management will become too
restrictive, potentially creating
opportunities for those who stay.
Energy efficiency is also top of
mind. As new Energy Performance
Certificate (EPC) regulations come
into effect, landlords who act now to
upgrade properties could avoid future
cost spikes and position themselves
more competitively. Brokers can
guide clients on both compliance and
For landlords, the
question centres around
whether to act now or
wait. Locking in at today’s
rates could secure stability
after years of volatility”
opportunity, helping them navigate
the changes with confidence.
A shift
A growing number of landlords are
choosing to invest through limited
companies, with more than 400,000
property companies now registered
in the UK. While the tax advantages –
such as 100% mortgage interest relief
and lower corporation tax – remain
aractive, policy shis could alter
the benefits.
More than
400,000
property
companies are
now registered
in the UK
Brokers should consider raising
the option with all landlord clients,
weighing up the potential savings
against setup costs and the possibility
of future legislative change. The trend
reflects a wider professionalisation of
the sector, making informed advice
more valuable than ever. ●
September 2025 | The Intermediary
29
