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The last year was a landmark year for buy-to-let rents as newly-agreed rents ended lower than when they started for the first time since records started 14 years ago.
The dip was not massive - just an average 0.7 per cent across the country - but enough to send a shudder through the sector as more than a decade of growth came to an end.
The research, by property consultancy and estate agents Hamptons, calculated that an average new tenant is paying £1,371 a month rent, which is about £10 less than tenants moving into an equivalent home a year ago paid.
Landlords in London reduced rents by 2.7 per cent during 2025, losing around £63 a month, with values retreating to amounts last seen in June 2023.
Although rents are falling, letting agents have more houses to offer, with stock levels down just 6 per cent from December 2024.
Lower rents are not the only cause for concern for landlords. Stock levels may be up, but the number of buy-to-let homes bought by landlords dropped to 11 per cent of the market - the lowest level recorded.
Hamptons' head of research, Aneisha Beveridge, said: "The North East continues to stand apart as the most investor‑heavy part of the country, with landlords accounting for 29 per cent of all purchases. The East Midlands and West Midlands followed at 15.1 per cent and 15 per cent respectively
"Yet 2025 also marked a subtle rebalancing. Falling interest rates boosted the appeal in Southern England, attracting more investors into markets where activity had previously slumped.
"As a result, the South East, East of England and North East were the only English regions to record an increase in landlord purchases compared with 2024."
| Product | No of deals | Best deal |
|---|---|---|
| Best fixed rates | ||
| 2 year fixed rate | 1,620 | 5.35% - Molo Finance |
| 3 year fixed rate | 146 | 3.04% - BM Solutions |
| 5 year fixed rate | 1,824 | 6.05% - Molo Finance |
| Best LTV rates | ||
| 60% Loan-to-value | 3,919 | 4.75% - Molo Finance |
| 75% Loan-to-value | 2,714 | 2.44% - Molo Finance |
| 80% Loan-to-value | 543 | 2.54% - Molo Finance |
| Best variable rates | ||
| Discounted variable | 125 | 3.15% discounted for 2 years - Staffordshire Building Society |
| All variable | 146 | 3.15% discounted for 2 years - Staffordshire Building Society |
| Best corporate deal | ||
| 2 year fixed rate | 10 | 2.19% - CHL Mortgages |
| Best first-time landlord deal | ||
| 2 year fixed rate | 10 | 3.40% - NatWest |
Source: Moneyfacts
An example mortgage is borrowing £170,000 over 25 years on a house valued at £284,000 at an interest rate of 4.58 per cent variable for 25 months, reverting to 8.49 per cent variable for the term. 25 monthly payments of £648.83 and 275 monthly payments of £1202.75. Total payable £518,201.00 includes loan amount, interest of £346,977, a zero valuation fee and product fees of £999. The overall cost for comparison is 8.2 per cent APRC representative.