A Changing Market for Landlords
What’s Changing for Landlords and How They Are Responding
It’s been an eventful few weeks in the mortgage and property market.
Rates have moved quickly, rising sharply before easing again and this has led to a surge in client enquiries, particularly from those approaching completion and wanting to ensure they’re still on the best possible deal.
As Campbell Grafton explains:
“When rates move like this, even by a small amount, it can make a real difference to monthly payments, so naturally, clients want to revisit their options.”
Fixed vs tracker: A question we’re hearing daily
One of the most common conversations right now is whether to fix or consider a tracker.
With fixed rates increasing and then starting to ease, some borrowers are exploring trackers as a way to benefit if rates fall in the future.
The key consideration is simple:
- Fix for certainty
- Track for flexibility (and potential savings)
But there’s no one-size-fits-all answer, it depends on your appetite for risk and your view on where rates are heading.
The bigger shift: Renters’ Rights Act
Alongside rate movements, the Renters’ Rights Act is having a significant impact on landlord sentiment.
From 1 May 2026:
- Section 21 evictions will be removed
- Tenancies become open-ended
- Rent increases are limited and more formalised
While the intention is to improve tenant security, many landlords are understandably cautious.
As Campbell notes:
“Most landlords aren’t big corporations, they’re individuals trying to make sensible long-term decisions. These changes do make things feel more uncertain.”
The reality for today’s landlords
Many of the landlords we speak to didn’t start with a large-scale strategy.
They:
- Kept a previous home
- Invested for retirement
- Or gradually built a small portfolio
But today, rising costs and increasing regulation mean returns are often tighter than expected.
In some cases, rental income is barely covering mortgage and running costs — a situation we’re hearing more frequently.
How landlords are adapting: The rise of HMOs
In response, landlords are reassessing their approach.
Some are exiting. Others are evolving.
One strategy we’re seeing more often is a move towards Houses of Multiple Occupation (HMOs).
Why HMOs?
- Higher rental yields through multiple tenants
- Increased income potential from a single property
- Continued demand for shared, affordable housing
For landlords feeling the squeeze, this can be an effective way to improve cash flow.
But it’s not straightforward
HMOs come with additional complexity:
- More tenants means more management
- Licensing requirements can be strict and time-consuming
- Compliance standards are increasing
As Campbell puts it:
“You can make it work, but it’s not passive. It’s a much more hands-on investment.”
A more strategic property market
The common thread across everything we’re seeing is this:
The property market hasn’t become unworkable, but it has become more complex.
- Mortgage decisions require closer attention
- Regulations are reshaping landlord behaviour
- And investment strategies are evolving
How we can help
Whether you’re:
- Reviewing your mortgage in a changing rate environment
- Considering a switch between fixed and tracker
- Or rethinking your property strategy
We’re here to help you make sense of your options and find a solution that works for you. Please get in touch for a confidential and no obligation chat.