September and early October provided considerable food for thought for all stakeholders in the buy-to-let (BTL) industry.
In September, Angela Rayner was forced to resign as housing minister over tax issues, and new housing minister Steve Reed also made headlines as he vowed to “build, baby, build”.
However, Reid will be under pressure to deliver substance rather than flowery slogans. His comments came against the backdrop of disappointing housebuilding data released by the Office for National Statistics last week. Just 38,780 new homes were completed between January and March 2025, compared with 75,000 homes per quarter needed to meet the government’s own target.
Shocking growth in young landlords
In fact, it is reported that the number of housebuilders across the UK has fallen for the first time in a decade as the end of the Help to Buy scheme, stubborn mortgage rates and rising construction costs in recent years offset the government’s intention to increase supply.
In October, the Tenants’ Bill of Rights passed its final stages in the House of Commons, with Housing Secretary Matthew Pennycook confirming that the government had rejected almost all amendments put forward by the House of Lords.
This means the legislation will enter its final stages before receiving royal assent, with all key measures remaining unchanged, including the repeal of section 21, the introduction of decent housing standards and the end of assured short-term tenancies.
Purposeful reforms are necessary, especially in the PRS that provides an umbrella for the most vulnerable in society
Of course, there have been rumors that landlords could be hit by proposals to apply National Insurance to rental income; while the Greens have hit the headlines with their ridiculous pledge to exclude private landlords from the housing system entirely.
Gather the positives
What positives can be gleaned from this uncertain outlook, from the perspective of landlords and indeed everyone within BTL’s professional space?
There are reliable indicators that landlords are continuing to adapt. And, while we are undoubtedly seeing some landlords exiting the market, the data also shows that a number of new, younger landlords are vying to provide solutions and value to the growing private rented sector (PRS).
Real solutions must be found through evolving propositions, not by offering cheap products
So far this year, 75% of shareholders in new companies are under the age of 50, according to London-based property agency Hamptons, a significant increase of 68% from a decade ago.
Hopefully this shows that a younger generation of landlords (the future of PRS) are embracing legislative change and planning for the long term by looking to secure their investment in structures that reduce the tax burden; whilst increasing profits allowing them to maintain their stock to the rigorous standards they now (rightly) expect.
Millennial Engagement
In fact, the growth in young landlords is staggering. These data strongly suggest that many Millennials, a large portion of whom may have been struggling to purchase their own homes, are now the latest pioneers of BTL. A new generation is looking for alternative ways to build long-term wealth through bricks and mortar.
However, having a committed landlord is not enough. Lenders will also need to find more ways to support brokerages and landlords, thereby (indirectly) broadening the reach of the PRS. Lender value must be sought through innovation that accompanies legislative challenges and market forces, not just offering free valuations or nominally lower interest rates.
There are reliable indicators that landlords are continuing to adapt
Real solutions must be found through evolving propositions, not by offering cheap products. It needs to be recognized that a “race to the bottom” for interest rates is unsustainable and essentially only benefits landlords who already have the required leverage.
Purposeful reform is necessary, particularly in relation to PRS, which provides an umbrella of protection for the most vulnerable in society, and when reform is undertaken with empathy and balance, recognizing the need for healthy, symbiotic relationships between tenants and landlords, PRS can flourish.
Against this opaque backdrop of inevitable change, one thing is certain: Lenders and brokerage firms within BTL need to maintain their position – operating collaboratively to ensure timely adaptation and evolution, with propositions and services that deliver real solutions and an equal amount of measurable value.
Matthew Rowan is ADDirector of buy-to-let agency
This article appears in the November 2025 edition Mortgage strategy.
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