As we move into summer, there’s plenty for UK landlords to keep an eye on. From falling SWAP rates and lender repricing to EPC compliance confusion and house price fluctuations, the market is shifting, and fast.
Here’s a round-up of the latest developments and what they could mean for your portfolio.
SWAP Rates Are Falling, But Mortgage Pricing Is Lagging
SWAP rates have continued their gentle downward trend, with 2-year SWAPs now at 3.58% (down from 3.8% a month ago) and 5-year SWAPs at 3.61%. In theory, this reduction in lenders’ cost of funds should lead to lower mortgage rates.
We are seeing some movement. Lenders like Leeds, Coventry, BM Solutions, and MOLO have all trimmed rates, some by as much as 0.3%. However, many lenders are holding off on repricing, likely waiting to see if the trend continues before making costly changes to their product ranges.
Leeds offers competitive pricing for landlords with Limited Company structures, though its criteria remain rigid. Coventry and BM Solutions are also worth a look, especially for those with standard properties and up to 10 background mortgages.
Find your next BTL mortgage rate here >>
Lender Loosens Criteria for Limited Companies
In a welcome move, Fleet Mortgages has updated its lending policy to allow SPVs owned by holding companies. This is a big win for landlords with more complex corporate structures, especially those using group companies to manage tax and cash flow efficiently.
Fleet joins other lenders like Paragon, Kent Reliance, and Foundation Home Loans in supporting these structures, but their competitive pricing makes this change particularly noteworthy.
Find your next BTL mortgage rate here >>
House Prices: Slowing Growth, But Optimism Ahead
Nationwide’s latest report shows annual house price growth slowing to 2.1% in June, down from 3.5% in May. However, economists remain optimistic, citing low unemployment, rising real wages, and strong household balance sheets.
Regionally, Northern Ireland leads with 9.7% annual growth, while England lags at 2.5%. The Southeast continues to underperform, dragging the national average down.
If you want to buy, now could be a prime time to negotiate. In cities like London, Bournemouth, and Brighton, properties are taking over 130 days to sell, creating real opportunities for savvy investors.
EPC Confusion: A Wake-Up Call for Landlords
A recent report from The Mortgage Works revealed that 62% of landlords didn’t know that an EPC certificate is a legal requirement. Even more concerning, 73% are unsure how much improving their property’s energy rating would cost.
With 28% of landlords with D-rated properties considering selling, it’s clear that confusion and concern are widespread. But selling isn’t always the best option, especially in a slow market.
If you’re unsure about your EPC obligations or how to fund improvements, speak to a broker. Financing options are available, but even minor upgrades (like LED lighting) can make a difference.
Renters' Rights Bill Delayed - But Changes Are Coming
The Renters' Rights Bill won’t pass until autumn, but 6 key amendments are already on the table. These include:
- Withdrawal of mandatory pet insurance
- Potential for “pet rent” (though this may be capped)
- Transition rules for rent-in-advance tenancies
- Adjustments for joint tenancies and student accommodation
- Tribunal-based rent increase rules
- Councils no longer need to give notice before investigating suspected breaches
While not all changes will affect every landlord, it’s worth staying informed, especially if you let to students or manage HMOs.
Final Thoughts
It’s a busy time in the buy to let world. Mortgage rates are edging down, but slowly. EPC compliance is more critical than ever. And the property market is offering both challenges and opportunities.
