Complex buy-to-let in a shifting market: why landlords are leaning into yield and structure

It has been difficult to take a fixed view of the buy-to-let market in recent months, largely because conditions have moved quickly and, at times, sharply, particularly through March and into April when swap rate movements acted as the catalyst for both product withdrawals and repricing across the sector.  

That shift has clearly had an impact on sentiment, especially for purchase activity, with some landlords understandably choosing to pause while pricing settles and product availability improves. 

However, while short-term behaviour has adjusted, the underlying direction of travel has not fundamentally changed. Landlords are still active, but they are being more selective, more disciplined in their decision-making, and increasingly focused on the strength of income returns and the resilience of their portfolios.  

This is borne out by our own recent Rental Barometer Q1 2026 data, which showed a reduction in purchase applications to 33%, down from 37% in the previous quarter, suggesting a more cautious approach to acquisitions in the current climate. 

A clear move towards more complex property types 

However, at the same time, one of the most notable trends has been the continued rise in demand for more complex buy-to-let assets, particularly HMOs and MUFBs. According to our own internal application data, there has been an 8.4% year-on-year increase in HMO applications, pointing to a growing appetite among experienced landlords to target the higher-yielding opportunities these types of properties often represent. 

This is closely linked to the broader shift in the profile of borrowers. Portfolio landlords now account for 65% of our business, underlining the growing dominance of more experienced investors who are typically better placed to manage complex property types and respond to changing market conditions. 

Yield remains the key driver 

The rationale behind this move into more complex property types is clear when looking at the rental yield data. Again, our recent Rental Barometer data showed average yields rising to 8.1% across England and Wales, up 0.7% year-on-year, with increases recorded in every region. 

Importantly, this is not limited to traditional high-yield areas. Our data showed regions across both the North and South recording improvements, reflecting strong tenant demand and a consistent ability for landlords to generate income.  

In that context, it is unsurprising landlords are prioritising assets, such as HMOs and MUFBs, which can maximise rental returns and provide a buffer against higher borrowing costs. 

Adapting to uncertainty with greater flexibility 

Alongside property choice, there has also been a noticeable shift in financing preferences. We saw a 506% year-on-year increase in applications for tracker products, suggesting landlords are placing greater value on flexibility as they manage interest rate risk in an uncertain environment. 

Taken together, these trends point to a market that is not retreating, but recalibrating. Landlords are still looking to grow and refine their portfolios, but they are doing so with a sharper focus on yield, structure and flexibility, particularly within the complex buy-to-let space, where opportunities remain for those prepared to take a more considered and informed approach. 

Everything starts with a good conversation. Get in touch with the Fleet team today. 

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