UK Landlords Adjust Strategies Amid Rising Costs

Many buy-to-let landlords in the UK have adjusted their finances over the past 18 months to cope with rising costs, according to a report from Foundation Home Loans. The survey of over 770 landlords revealed that 30% have renegotiated their mortgages, 29% have increased rents, and 25% have postponed plans to buy additional properties. Additionally, landlords are looking to save on management fees, with 17% taking on more property management tasks themselves and 8% switching from letting agents to self-management.

Foundation Home Loans' director of sales, Grant Hendry, noted that landlords are using various strategies to manage increased mortgage costs, such as remortgaging, negotiating with lenders, and utilising savings or selling properties. Despite these challenges, the report highlights positive trends in the private rented sector, with more than 40% of landlords planning to remortgage or transfer their mortgages in the next year and 68% relying on mortgage advisers for their recent buy-to-let mortgages.

Looking ahead, 48% of landlords intend to use buy-to-let mortgages for future investments, while 38% plan to buy properties outright and a similar percentage will release equity. Mr Hendry acknowledged the difficulties faced by landlords but emphasised the ongoing profitability of portfolios, rising yields, and strong tenant demand amidst low housing supply and increasing population.

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