If you're a landlord trying to make sense of today's property market, you're certainly not alone.
Over the past few years we've seen rising interest rates, tax changes, new regulations and plenty of headlines suggesting that buy-to-let has become increasingly challenging. Yet when we look beyond the headlines, the latest data paints a far more nuanced picture.
Mortgage pricing remains competitive, rental yields are improving, arrears are falling and many investors are still actively expanding their portfolios.
Here's what UK landlords need to know.
Here’s your weekly MFB News update from 26th August 2026.
Mortgage Rates: Why Lenders Are Still Cutting Prices
One of the biggest stories in the buy-to-let mortgage market is the continued competition between lenders.
Interestingly, SWAP rates, which play a major role in determining fixed-rate mortgage pricing, have remained broadly stable over recent weeks. Two-year and five-year SWAP rates have shown little meaningful movement, meaning lenders aren't benefiting from significantly lower funding costs.
Despite this, we've still seen a number of lenders reduce selected buy-to-let mortgage rates.
Recent pricing changes include reductions from lenders such as NatWest, HSBC, Coventry Building Society, Santander and Fleet Mortgages, while some lenders have chosen to adjust only specific products rather than implementing broad rate cuts.
For landlords, the key takeaway is that these reductions are being driven largely by competition and lenders seeking new business, rather than by fundamental changes in wholesale funding costs. That means rates may not continue falling indefinitely.
If you're approaching a remortgage or purchase deadline, it may be worth considering your options sooner rather than later rather than assuming rates will keep drifting down.
Base Rate Outlook: Is a Cut Still Likely?
The Bank of England held Base Rate at 3.75% at its most recent meeting, marking another consecutive hold.
While opinions vary on where rates will go next, many economists currently expect Base Rate to remain at broadly similar levels throughout the remainder of the year. At the same time, ongoing geopolitical uncertainty and energy market pressures mean forecasts remain far from certain.
For landlords considering fixed versus tracker mortgages, this creates a familiar dilemma.
Tracker products can sometimes appear attractive due to lower initial rates. However, if inflationary pressures re-emerge or economic conditions change, borrowers on variable rate products could find themselves paying more than anticipated.
There's no perfect answer, but it reinforces the value of reviewing your financing strategy alongside your wider investment objectives.
Renters' Rights Act: Key Updates for Landlords
The Renters' Rights Act continues to reshape the private rented sector, and it's important that landlords remain up to date with the changes.
Several key measures are now in place:
- Section 21 notices have been abolished.
- Tenancies are now periodic by default.
- Rent increases can only be made once annually using a Section 13 notice.
- Courts are no longer accepting possession applications that rely on legacy notices served prior to the legislation coming into force.
Further changes are still to come.
A new PRS database is expected to be rolled out gradually before a wider national launch, and landlords will eventually need to register both themselves and their rental properties. An ombudsman scheme for landlords is also planned for the future.
While many landlords remain concerned about the long-term impact of the legislation, the worst-case scenarios predicted by some commentators have not necessarily materialised so far.
As always, understanding your obligations and planning ahead is likely to be the best defence against future disruption.
Good News for Landlords: Profitability and Yields Improve
Among the more encouraging stories this month is new research pointing to improving conditions across the buy-to-let sector.
According to the latest landlord trends data:
- Only 26% of landlords reported rent arrears over the previous 12 months, the lowest level recorded by the survey.
- 86% of landlords described their letting activity as profitable.
- Average gross rental yields reached 7.02%.
- HMOs continue to outperform many other property types.
- The North West remains one of the strongest performing UK regions.
These findings are supported by wider lending data, which indicates falling levels of mortgage arrears amongst buy-to-let borrowers and continued strong credit performance compared with some other lending sectors.
For landlords who have weathered the challenges of recent years, this data provides a welcome reminder that many property businesses continue to perform well.
Property Investment Hotspots: Where Are Values Growing?
For investors seeking capital growth, location remains critical.
Recent research examining communities surrounding major UK cities highlights a clear North-South divide.
Areas around Glasgow and Manchester are currently leading the way, with some commuter locations recording double-digit annual house price growth. Property values in affordable northern and Scottish markets continue to attract buyers seeking value and stronger growth potential.
By contrast, several southern commuter locations have experienced declines in asking prices, particularly in higher-value markets. London has seen values soften in many areas, while some traditionally popular commuter towns have also recorded price reductions.
For investors, this may create opportunities on both sides of the equation:
Stronger potential capital growth in northern cities and commuter markets.
Better value buying opportunities in parts of London and the South East.
The right strategy will ultimately depend on whether your focus is rental income, capital growth or a balance of both.
Are Landlords Still Investing?
Despite regulatory changes and challenging conditions, the answer appears to be a resounding yes.
Recent market analysis suggests landlords accounted for more than 14% of all property purchases during July, significantly above the year-to-date average.
What's particularly interesting is the discounts investors are securing.
Many landlords are successfully negotiating below asking price, with a growing proportion of sellers accepting offers more than 10% beneath their advertised price. Leasehold flat owners, in particular, appear increasingly willing to accept lower offers.
At the same time, rental growth continues to strengthen, supporting long-term investment returns and improving rental yield calculations.
For experienced investors with access to finance, today's market is arguably presenting opportunities that were much harder to find during the boom years.
Final Thoughts
While headlines often focus on challenges facing landlords, the latest evidence suggests that many buy-to-let investors continue to find opportunities in today's market.
Mortgage lenders remain competitive, rental yields are strengthening, arrears are falling and investors are securing increasingly attractive purchase prices.
The market is certainly evolving, and the Renters' Rights Act will continue to require careful attention. However, for landlords with a clear strategy and access to the right finance, there are still plenty of reasons to remain optimistic about buy-to-let investing.
If you'd like to discuss your next purchase, remortgage, limited company buy-to-let mortgage or portfolio strategy, our team would be delighted to help.
Call: 0345 345 6788
Email: enquiry@mfbrokers.co.uk
Submit an enquiry here
All rates are subject to individual circumstances and to change.
Next Steps
Get in touch, call our experts on 0345 345 6788 or submit an enquiry here to see how we can help.
