Growing numbers of landlords are earning a profit from their rental properties, according to Paragon, with many also benefiting from easing Buy-to-Let mortgage rates.
The study revealed that 87% of landlords earned a profit from their rental properties in the second three months of 2025, up from 84% between January and March this year.
This marks a significant recovery from 2023, when landlord profitability fell to a five-year low, with just 77% of landlords claiming their rental properties were making them money. Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “As well as reflecting the resilience of the sector, these findings highlight how continued demand for good quality, flexible housing means that buy-to-let property remains an attractive asset for landlords.”
Improving mortgage rates offer additional relief
The good news for landlords is that several lenders have improved their Buy-to-Let mortgage offerings in recent weeks, including Accord. The intermediary-only subsidiary of Yorkshire Building Society has reduced both its two and five-year fixed rates.
Others have revised their criteria to increase borrowing capacity. Landbay, for example, has increased its maximum loan-to-value from 65% to 75% and the maximum loan amount has gone up by 15%, with loans now available from £75,000 up to £562,500.
The recent mortgage rate changes could mean that landlords coming off two-year fixed-rate deals may see a drop in their monthly repayments. However, those reaching the end of longer-term, five-year fixes may face higher costs—though the recent base rate cut in August could help, and further reductions later in the year may drive rates down further.
Why advice matters
With mortgage rates constantly changing, it can be difficult to know whether you’ve secured the best possible deal. This is when advice can prove invaluable, as a broker can help you decide on the most competitive option for you based on your individual circumstances.
If you’re concerned about locking into a mortgage now in case rates fall again in future, L&C’s Rate Check service offers a safety net. Simply ask your adviser for a Rate Check at any time before your Buy-to-Let mortgage completes. They’ll review the market to confirm whether your deal remains the most competitive - and if it’s not, they’ll help you switch to a better option if one is available.
