As we move into summer, the UK property and mortgage landscape has continued to shift. Whether you're expanding your portfolio or simply keeping an eye on the market, here’s a round-up of the key developments every buy to let landlord should be aware of this month.
Swap Rates: Holding Steady, But Watch This Space
Over the past month, we have seen a slight increase in SWAP Rates, with 2-year swaps sitting at 3.8% (up from 3.59%) and 5-year swaps at 3.82%. While these figures are still lower than this time last year, the recent uptick reflects ongoing market uncertainty.
Recent inflation concerns, potential tax changes, and global economic jitters (yes, even the latest from across the pond) all contribute to a cautious outlook. As it stands, we’re not expecting any major shifts in SWAP rates in the near term. And if you’re one of the many landlords holding out for a Base Rate cut in June, it’s worth noting that the odds of that happening are currently sitting at just 20%.
In short, if you’re considering locking in a fixed rate, now might be the time to act. Waiting for a rate drop could mean missing the boat.
Find your next BTL mortgage rate here.
The Latest Lender Pricing Changes
It’s been a relatively quiet week on the lender front, with only a few making pricing adjustments:
- Santander increased rates by up to 0.1%
- NatWest raised some rates by up to 0.25%
- Leeds Building Society introduced new SPV rates, slightly cheaper than previous offerings
- Foundation Home Loans launched more competitive, niche products
With lenders’ cost of funds up by 0.2%, we may see further pricing increases in the coming weeks, unless Swap Rates ease. Some lenders may choose to absorb the cost for now, but it’s a delicate balancing act.
Renters’ Reform Bill: Delayed Again
The much-anticipated Renters’ Reform Bill has hit another pause. With Parliament in recess and no report stage scheduled, it’s unlikely we’ll see Royal Assent before the summer break. With this in mind, we can expect further movement in the autumn.
This means landlords have a bit more breathing room before any legislative changes take effect. But don’t get too comfortable, as the bill is still on the horizon.
Find out what’s coming in the Renters’ Rights Bill in our informative, on-demand webinar.
Key Takeaways from Paragon’s Latest EPC Report
Paragon’s latest report on sustainability in the private rental sector has revealed some surprising statistics. Interestingly, 57% of landlords who’ve invested in energy efficiency improvements haven’t yet updated their EPC certificates to reflect those changes.
Why does this matter?
Making EPC improvements to your properties can often come with incentives that landlords could benefit from, including:
- Green mortgage rates: Some lenders offer discounted rates (up to 0.15% off) for properties with higher EPC ratings.
- Cash incentives: Lenders may offer cashback if you improve your EPC during the mortgage term.
8 tips to boost your EPC rating!
Housing Market Updates
According to Home Tracks' latest report, May saw the strongest sales activity since 2021, with a 13% increase in homes for sale and a 6% rise in sales agreed. Price inflation remains low and stable at 1.6%, with a clear north-south divide driven by affordability.
Buyers are slowly returning to the market, likely encouraged by slightly lower mortgage rates and a wider choice of properties. While the days of stamp duty holidays are behind us, the long-term cost of high mortgage rates has made many cautious. That tide may now be turning.
Search BTL mortgage rates here.
TMW’s Regional Snapshot: What UK Landlords Are Doing Now
In the latest regional snapshot from The Mortgage Works, we saw some interesting trends emerge across the UK landlord landscape.
On average, portfolio sizes came in at 7.4 properties, with rental yields around 6.4%.
While 7% of landlords had added to their portfolios in the past year, activity was notably higher in the North East, where 18% reported that they had made a purchase. The North East also saw the highest level of sales, with 30% of landlords having sold at least one property.
Void periods were also a concern, with 40% of landlords experiencing them. Again, the North East led here, with over half reporting voids—highlighting the need to understand local market dynamics.
Confidence varied by region. Landlords in the South East were the most upbeat, while those in Yorkshire & Humber and Wales were more cautious.
These insights are invaluable if you're looking to invest in a new area. It’s not just about yield—voids, sentiment, and long-term potential all matter.
Final Thoughts
The UK buy to let market continues to evolve, presenting opportunities and challenges for landlords. Whether you're reviewing your mortgage options, updating your EPC to unlock potential savings, or exploring new regions for investment, staying informed is key. In a market that moves quickly, having the right insights and acting on them can make all the difference.
Next Steps
If you’d like tailored advice or want to discuss your next move, we’re here to help. Give us a call at 0345 345 6788 or get in touch here.
