Buy-to-let mortgage rates have dropped to their lowest level since September 2022, offering some relief for landlords amid a turbulent market. Data from Moneyfactscompare.co.uk shows a typical two-year fixed rate is now 4.88%, down from 5.35% last year and a far cry from September 2023’s 6.64%. Five-year fixed rates have also fallen to 5.21%, compared with 6.49% in September 2023.

Despite the good news on rates, landlords continue to face significant pressures. The upcoming Renters’ Rights Bill will introduce stricter tenant protections, ending no-fault evictions and raising property standards. Meanwhile, speculation that National Insurance could be applied to rental income adds further uncertainty, particularly for landlords holding properties outside a limited company.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, noted: “The cost of finance is a fundamental part of being a landlord. While lower rates may ease some pressures, tax changes and upcoming reforms mean investors still face an unpredictable landscape. Landlords who refinanced recently could benefit, but many remain cautious, given ongoing regulatory and financial uncertainties.”

While buy-to-let rates provide a glimmer of hope, the sector must navigate complex legislation, evolving tax rules, and the broader impact of the Renters’ Rights Bill on day-to-day operations.