More landlords are putting properties up for sale despite record number of buy-to-let rates
There was a spike in landlords selling their properties at the start of 2025 despite a record number of buy-to-let rates available.
Data on the This is Money website shows the proportion of landlords listing property for sale at the start of this year jumped by almost 50 percent compared to last year.
In January, 25,049 previously rental homes were listed for sale, according to analysis by property data firm TwentyCi. This represents 17.4 percent of all new listings. The figures also revealed that the number of rental properties sold by landlords to owner occupiers in 2024 was 111,696.
More of Trinity Financial's clients have recently taken limited company buy-to-let mortgages rather than standard buy-to-let mortgages. They are also switching their existing portfolios to limited companies. Aldermore is one of the specialist lenders targeting landlords keen to remortgage property portfolios.
Many landlords are selling up at a time when there are more buy-to-let rates to choose from. According to data from Moneyfacts, the number of buy-to-let mortgage rates was up 25% in February compared to the same month last year, at 3,560. This is the highest number since Moneyfacts records began in November 2011.
The landlord exodus results from a combination of higher mortgage rates, proposed changes to legislation such as the Renters' Rights Bill and higher taxation.
Aaron Strutt, product director at Trinity Financial, says: "We constantly get enquiries from people who want to get a buy-to-let property and from landlords who want to refinance their portfolios. Based on the tax changes, it pays to speak to an accountant before purchasing a buy-to-let. For many people, there is not enough profit to be made. Our brokers also speak to first-time buyers purchasing properties from their landlords."
What happened to buy-to-let mortgage rates recently?
Buy-to-let mortgage rates are more competitively priced than they were. More banks and building societies offer higher arrangement fees with lower rates, although there are sensibly priced mortgages with £999 fees.
Capital Home Loans offers a sub-2.7% two-year fixed rate for landlords with a 45% deposit - the catch is that there is a 7% arrangement fee. HSBC offers a five-year fix priced just over 4% with a £3,999 arrangement fee.
There are many buy-to-let mortgages to choose from across a range of high street and specialist providers.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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