Bringing back landlord buyers

Originally published by The Intermediary

One of the benefits of speaking to advisory firms across the country every week is getting a very immediate sense of what their landlord clients are actually doing, rather than simply relying on some of the broader narratives that can be thrown about when it comes to the buy-to-let market.

As we head towards the final quarter of 2026, those conversations feel increasingly positive, particularly when it comes to landlords who are thinking about their next purchase, reviewing how their existing portfolios are financed, or considering whether current property market conditions offer an opportunity to add to them.

Clearly, there is a rather large caveat sitting at the end of October in the form of the Budget, and landlords will understandably want to know whether there are any further changes affecting property or taxation. However, there are also good reasons why advisers should be having more focused conversations with acquisitive landlord clients now rather than assuming everyone will simply sit on their hands until November.

Tenant demand continues to support investment

Tenant demand remains one of the most important parts of any landlord’s investment decision and the recent direction of travel has been encouraging, with evidence from Pegasus Insight research suggesting demand has strengthened again while the supply of available rental property remains more constrained.

That tallies with many of the conversations we are having with advisers, because landlord clients are not generally questioning whether there will be demand for good rental property, but are much more focused on whether a particular purchase works financially and where they can generate the level of yield they require.

It means the landlord considering another purchase today is likely to be looking closely at purchase price, achievable rent, financing costs and the potential return across the whole investment, rather than simply assuming capital growth will make the numbers work over time.

Purchase activity tells its own story

This is why the evidence of increased landlord purchase activity is particularly interesting, because it backs up some of what advisers are seeing and hearing from their clients.

There has been no shortage of commentary in recent years suggesting landlords are leaving the PRS in large numbers, and clearly some have sold properties, but that has never been the whole story. There are plenty of landlords who remain committed to property for the long term and, increasingly, it appears some are seeing the present UK housing market as an opportunity to expand.

Recent Hamptons data showed landlord purchases exceeding landlord sales for the first time since 2019, while figures also showed landlords taking an increased share of overall property purchases. For advisers, that is important because it points towards a group of existing clients who may be moving from maintaining their portfolios to actively considering growth again.

Property prices are creating an opening

It is perhaps not difficult to understand why. Nationwide’s July figures showed annual house price growth remaining subdued, and there appears to be little expectation of a sudden surge in values over the coming months, particularly with more property available for sale.

For landlords who are prepared to buy, that can alter the conversation considerably because they may have more choice, more time to assess individual properties and potentially more scope to negotiate a purchase price which allows the investment to meet their required return. We have already seen evidence of landlords negotiating harder on purchases, and I do not think there is anything particularly surprising about that.

Experienced landlords tend to be disciplined buyers and, if a property does not work at one price but does at another, they will make an offer based on those numbers. Equally, a seller remains free to accept or reject it, which is simply how a functioning property market operates. What matters from a buy-to-let perspective is that some landlords clearly believe there is value available and are prepared to act when they find it.

The next purchase may start with the existing portfolio

This is also where adviser conversations can become particularly important because

wanting to purchase another property and having the deposit immediately available are two different things.

When I speak to advisory firms, one of the areas that continues to come through strongly is the importance of looking at the landlord’s portfolio as a whole, particularly when clients have built up equity in existing properties.

For some landlords, refinancing one or more of those properties could provide the deposit for their next purchase, while others may be able to restructure existing borrowing to put themselves in a stronger position for future acquisitions.

That creates a much wider advice conversation than simply finding a mortgage for a property the landlord has already agreed to buy. It means identifying those clients who want to grow, understanding what they already own, looking at where equity sits within the portfolio and considering how existing borrowing could support the next stage of their plans.

Reasons for confidence beyond the fourth quarter

There are still plenty of unknowns and the Budget means nobody should assume the final months of 2026 will be completely straightforward, but landlords have become used to operating against that sort of background.

What feels different as we approach this final quarter is several factors are beginning to line up more positively, with strong tenant demand, improving yields, subdued house price growth, greater product choice and evidence that landlords themselves are becoming more active purchasers.

From the conversations I am having with advisory firms, there is certainly no sense that professional landlords have stopped looking for opportunities, and in many cases quite the opposite appears to be true.

That should give advisers confidence to start those conversations now, not only about what clients might purchase during the remainder of this year, but about how they can put their portfolios in the right financial position to take advantage of opportunities during 2027 as well.