The Rise of the Aspiring Landlord: How Many Brits Want In - and How They're Getting There

BTL Isn’t Just Surviving – It’s Preparing for a Comeback

In the press, we’re constantly informed on how it’s especially difficult to be a landlord in the current market. Undoubtedly, there are challenges. But that doesn’t mean people aren’t trying to overcome them. Evidently, we may simply be in a relative lull before a wave of investment reinvigorates the BTL market.

Brits are an optimistic bunch. Of our respondents who said they’d like to own a BTL property in the future, 68% said they thought it was a realistic goal to achieve. Bear in mind, this is in the face of tough legislation, sky high property prices[9], and an uncertain geopolitical landscape[10].

This isn’t wishful thinking either. People are actively taking steps to make this aspiration a reality. Just over half (54%) of those who want to own a BTL property in the future are actively exploring ways of entering the property investment market. Meanwhile, 53% have taken steps to understand the rules and regulations involved in owning and renting out a BTL property.

On the latter, the majority of would-be BTL investors appear sensibly wise, and insightful. Some 69% understand that they would need a specialist type of BTL mortgage when buying a rental property. Also, 62% said they’d like to buy a property in a different part of the country to where they live as they believe it would make for a better (or cheaper) investment. Those living in London may realise it simply may not be possible to hold a BTL asset in the same place and therefore, they may not waste their resources or time on it.

One specific stat from our results, we think, proves especially revealing, for what is likely an unexpected reason.

We asked our respondents if they agreed or disagreed with the statement: “If I won £1 million in the lottery, I’d use it (some or all) to buy one or more properties”. Some 58% of respondents either strongly, or somewhat agreed. This rises even higher for those aged 18-34 (68%), and 35-54 (64%) specifically.

The reason this is noteworthy is because entire generations are on the verge of winning their own personal lotteries. Globally, a “Great Wealth Transfer[11]” is set to take place by 2030. Some $18.3 trillion is set to be handed down between the generations over the coming years, with around $3.5 trillion of this occurring within Europe.

In the UK specifically, Baby Boomers are sitting on around £2.89 trillion in property wealth[12]. Eventually, this wealth will need to be handed down to younger generations, or otherwise sold off. Chances are, as capital is freed up over the coming years, much of it will find its way into the BTL market. The question is, what prospects are there over the coming years in the property world?

So, What Is The Long-Term Outlook?

The media, and likely the property investors who keep up with it, are understandably, and rightly, focused on the immediate term. Everyone in the property market needs to understand how their prospects are looking for the next week, next month, and next year.

Indeed, Market Financial Solutions is itself a short-term lender. We need to ensure our loans sit on solid foundations now, not later. Still, investing in the property market (and in fact, most investment markets) is usually a long-term endeavour.

So, without belittling or ignoring the BTL market’s current challenges, it’s worth exploring its longer-term outlook. Fortunately, there is reason to be hopeful here.

In late 2024, Savills[13] forecasted that mainstream UK rents will rise by 17.6% by 2029. Moreover, in its own forecast, JLL[14] found that a lack of supply and more competitive rates will push rents 17% higher by the end of 2029. Knight Frank [15]also expects cumulative growth of 17.6% in rents by 2029.

Specific areas within the rental market also hold plenty of potential for property investors and developers over the coming years. For instance, according to a report from the Pensions Policy Institute[16], the number of households renting in retirement could rise to 3.6 million by 2041, 1.7 million of whom would live in the PRS. As the retiree-renter population rises, they’ll need suitable, and desirable options. Landlords who provide this could be very well regarded.

More broadly, 1.74 million homeowners are expected to reside in the rapidly expanding build-to-rent (BTR) sector by 2030[17]. The state has signalled to the wider industry that it considers BTR to be critical to its plans in delivering high-quality rental options for its housing targets, and 20 key cities have been highlighted for their potential. This includes London, Birmingham, Manchester, Liverpool, and Bristol.

With adequate planning, and the right finance behind them, expanding landlords and property investors could do very well in these emerging opportunities, and others like them. Many, to reiterate, are already well on their way to being ready when the time is right.

Of those who want to own BTL property in the future, 44% are working additional hours/shifts to achieve that goal. Also:

• 30% have taken on a second job
• 52% are setting money aside each month
• 33% are living with friends or family members to allow them to save on rent or mortgage payments
• 27% have reduced or paused their pension contributions
• 29% have found someone (a friend or partner) to make a BTL investment with
• 24% have sold other assets such as shares, or collectables
• 30% have asked for financial support from parents or other family members and
• 28% have used inheritance

We commend these efforts (so long as they’re right for them) and we hope they bear fruit down the line. Where these people need a bit of further support with tailored BTL funding, we will be there to offer our help.

The View of Our CEO

“There is no getting away from the challenges currently facing the BTL market. But we must remember that where challenges emerge in the market, it can create opportunity elsewhere. Landlords may be selling up, but they may end up selling to optimistic new entrants, and first-time buyers.

Indeed, we are thrilled to see that not only are there still plenty of people who wish to enter the BTL market in the UK, but are actively going out of their way to make their wish a reality. Tenacity always beats capitulation.

This tenacity also appears sensible. It seems that most understand that the BTL investment market is not an easy route to success. Often, landlords can be thought of as faceless entities who simply collect rent. This, of course, is far from the truth. Landlords provide an invaluable service which requires strategic planning, dedication, and insight.

With the Renters’ Rights Bill and other forms of legislation on the way, that last element is more important than ever. It’s right that many would-be property investors are doing what they can to understand the rules involved.

As we all adjust to the remaining months of 2025, there will undoubtedly be further uncertainty in the market. Landlords, lenders, and renters alike will need to adapt to a dramatically different environment, but we will find a way forward. There will be light at the end of the tunnel.

At Market Financial Solutions, we will do everything we can to help with this transition and beyond. We continue to produce educational content that allows landlords to better understand the market they’re operating in. We’re partnering with more networks and clubs to allow more brokers and borrowers to access our range of products. We’re upsizing, and extending multiple of our institutional funding lines to ensure we can tweak our services to best serve the market.

It’s reassuring to see that even in the – apparently – bleakest of markets, there is still broad aspiration for BTL investment. We’re here to support that aspiration both now, and when boom times return once again.”