The lender’s latest landlord sentiment survey, conducted after its previous study in December and January, suggests confidence in individual property businesses has remained relatively stable.
More than four in 10 landlords (41.4%) described their outlook as neutral, while 21.8% said they felt positive about their portfolios and 36.8% negative.
Views on the wider UK economy were considerably weaker, however, with 69.2% of respondents expressing a negative outlook, compared with 27.1% who were neutral and just 3.8% who were positive.
Landbay said the findings indicate landlords are concentrating on factors within their control, such as portfolio performance and finance arrangements, while remaining cautious about the broader economic environment.
The survey also suggests landlords are taking a more defined approach to managing their portfolios, with most planning to hold their current positions over the next 12 months while others continue to buy and sell selectively.
More than half of respondents (51.9%) said they do not intend to purchase additional properties, although 35.3% are planning to expand their portfolios. Selling intentions were broadly unchanged from previous surveys, pointing to continued portfolio restructuring rather than a widespread withdrawal from the sector.
Landbay said the findings indicate landlords are continuing to adapt to market conditions and make targeted investment decisions, despite ongoing concerns about the direction of the UK economy.
Many landlords also continue to report relatively strong rental returns. More than a quarter (27.1%) said they are achieving gross yields of between 4% and 6%, while 21.8% reported yields between 6% and 8%. A further 15.8% said their yields exceed 10%.
Most buy-to-let investors are also planning rent increases over the next 12 months, with more than three-quarters intending to raise rents in some form. However, Landbay said landlords appear to be taking a more flexible approach to rent setting as they balance higher operating costs, tenant affordability and the introduction of the Renters’ Rights Act.
Fixed-rate mortgages remain the preferred option among landlords. Around 87.2% said they are likely to choose a two, three or five-year fixed deal for their next mortgage, with five-year fixes the most popular at 46.6%. Only 6% said they were considering a tracker mortgage, suggesting most landlords continue to prioritise certainty around borrowing costs.
Refinancing activity also remains a key focus. Landbay said many landlords coming to the end of existing deals this year may still be able to secure lower rates than those available two or three years ago, despite recent market volatility linked to inflation expectations. The lender said this presents an opportunity for brokers to review existing borrowing arrangements with landlord clients.
The survey also highlighted the continued role of brokers in the buy-to-let market. More than 83% of landlords said they used a broker from the outset when arranging their most recent mortgage, while a further 10% initially applied directly before turning to a broker to complete the transaction.
Rob Stanton, sales and distribution director at Landbay, said: “The key difference compared to the results of our previous survey is that sentiment and confidence appears to have stabilised, even during a somewhat turbulent few months, particularly when it comes to product availability and rates.
“Landlords, for the most part, appear to be very confident about their own property businesses, and the future of their investments, even when their views on the future performance of the wider economy remain far more sceptical.
“What we are therefore seeing is a landlord community which is predominantly focused on what they can control. They are making clearer decisions on whether to buy, sell or hold, and are continuing to adapt their strategies to ensure their portfolios remain profitable. It is also clear many landlords continue to achieve strong yields, which underpins their ability to remain active in the market, even in a more challenging environment.
“When it comes to borrowing, the preference for fixed rates remains very strong. Even with more discussion around tracker products, landlords are still prioritising certainty, particularly those looking to plan over the longer term.”
