How 2025 could be the best year yet for landlords!

Landlords are surprisingly optimistic about the private rented sector this year, with many looking to invest in boosting their portfolios, research reveals.

According to Market Financial Solutions, despite the upbeat outlook, there are doubts over financial stability and new laws which are tempering their enthusiasm.

The views of 300 landlords reveal that 36% aim to increase their portfolio – while 9% are looking to reduce their holdings.

And 54% say they anticipate a rise in property values over the next 12 months, with 39% expecting stability in prices.

Expressing confidence in BTL

The firm’s chief executive, Paresh Raja, said: “It is encouraging to see landlords expressing such confidence in the UK buy to let market, with many actively looking to expand their portfolios.

“This reflects the resilience of the sector and the continued demand for rental properties despite much speculation around landlords selling up.”

He added: “However, the risks identified in our research demonstrate the need for landlords to avoid complacency when managing their portfolios.

“New regulations, economic fluctuations and affordability concerns for renters will likely all play a role in shaping landlords’ investment strategies in the months ahead.”

Better rent returns in 2025

The research also highlights that 43% of those polled are predicting improved rental returns in 2025.

However, tenant affordability issues top the list of landlord worries, with 41% fretting over their tenant’s capacity to pay rent amid rising living costs.

Also, economic turbulence is troubling 35% of landlords, while 28% point to global unrest as a threat to their investments.

Risks facing BTL landlords

The survey also asked about the biggest risks facing landlords this year.

Unsurprisingly, there was a broad range of anxieties with inflation and growing living costs affecting rent payments leading with 41%.

It’s followed by domestic economic or political volatility at 35%.

Global uncertainties registered at 28%, with tighter PRS regulations and sluggish rental growth both recording 27%.

Other concerns include shifting non-dom policies (26%), planning system alterations (23%), slower-than-hoped interest rate reductions (21%), scarce financing options (19%) and a potential property price slump (15%).

At Best Nest we can offer a FREE rental valuation of your property plus guidance and education about how to invest wisely and where to get the best long term returns. Contact us now for a market appraisal and discussion about how we can help you turn your property into an income producing asset!