With a rich background in construction, design, and architecture, Luca Calaraili brings a unique perspective to the property market, constantly exploring how technology and innovation can reshape real estate investment. His insights are particularly relevant today, as a recent Lendlord survey reveals a private rental market defined by a stark contrast of bold ambition and deep-seated caution. We delve into this divided landscape, exploring the growth strategies of proactive landlords, the drivers behind the split in confidence, and how recent policy changes are shaping long-term investment decisions.
The latest Lendlord survey reveals that a significant two-thirds of landlords are actively planning growth, even in this uncertain climate. Could you walk us through the kinds of activities they’re prioritizing and how they’re managing to fund these ambitions?
It’s fascinating to see such a strong commitment to growth, with 66% of landlords planning moves like acquisitions, refinancing, or refurbishments. Acquisition is the front-runner, with nearly a quarter of landlords—23% to be exact—looking to buy more properties in the coming year. From my perspective in construction and design, the refurbishment piece is particularly telling. Landlords aren’t just passively holding assets; they are actively investing capital to improve them, which in turn boosts rental yield and property value. They are using strategies like refinancing to unlock equity from their existing portfolios, turning dormant value into the working capital needed for these new projects. It shows a sophisticated, proactive approach to asset management, even when external cost pressures are high.
The report paints a picture of a sharply divided market, with 45% of landlords feeling very confident while 43% are very concerned. What do you believe are the fundamental differences in portfolios or mindsets that create such a stark split?
That division is really the core of the story right now. It’s almost a perfect split down the middle between optimism and anxiety. In my experience, the confident group often consists of landlords who have managed their portfolios proactively over the years. They likely have well-structured finances, perhaps with a mix of fixed-rate mortgages that have insulated them from recent rate hikes. They see opportunity in uncertainty, viewing it as a chance to acquire properties from less-assured investors. On the other hand, the 43% who are very concerned are likely feeling the direct impact of rising costs and tax pressures. They might be facing challenging refinancing hurdles or holding properties that require significant capital for upgrades. It’s a classic case of one investor’s crisis becoming another’s opportunity.
It’s quite surprising that a third of landlords report the recent Budget actually boosted their appetite for investment. What do you think is driving this sentiment, and how are the associated tax changes influencing their decisions on ownership structures?
It certainly seems counterintuitive on the surface, but it speaks to the mindset of the professional investor. For many, the Budget, whatever its contents, provided a degree of certainty in an uncertain environment. It clarified the tax landscape, allowing them to plan with more confidence. This is where we see a renewed focus on ownership structures. Landlords are taking a hard look at property income tax and dividend tax rates and realizing that holding properties within a limited company structure may offer significant long-term advantages. This isn’t just a passive reaction; it’s a strategic pivot. That 33% who feel more confident are likely the ones who have run the numbers and see a clear, tax-efficient path forward, which energizes their plans for growth.
Looking further ahead, the survey shows 58% of landlords are adopting a buy-and-hold strategy for 2026. What does this long-term view tell us about their overall market outlook, and how does it fit with the very active management strategies you mentioned earlier?
That 58% figure is a powerful indicator of a deep, underlying belief in the fundamentals of the residential property market. A buy-and-hold strategy is the ultimate vote of confidence; it signals that these investors are not looking for a quick flip but are committed to the long-term value of their assets. This patient approach doesn’t conflict with active management—it’s fueled by it. The refurbishments and refinancing we see happening now are the very actions that make a long-term hold strategy viable and profitable. They are continuously optimizing their portfolios to maximize cash flow and appreciation over the long haul, effectively weathering short-term market volatility by ensuring their assets are as robust and high-performing as possible.
Do you have any advice for landlords who find themselves in the “very concerned” camp but want to find opportunities to grow their portfolios?
My advice is to shift your focus from macro-level anxieties to micro-level actions within your own portfolio. The survey shows that even amid uncertainty, the most successful landlords are adapting their approach rather than stepping back entirely. Start with a thorough review of your properties. Could a strategic refurbishment on one property significantly increase its rental income and value? Have you explored all refinancing options to improve your cash flow? Sometimes, taking one small, proactive step—like upgrading a kitchen or securing a better mortgage deal—can rebuild momentum and confidence. The opportunities are often found in active management and optimization, not just in waiting for the wider market to change.
