As the market wakes up from the usual Christmas and New Year slumber, there are signs that, following a year of uncertainty in 2025, the property investment landscape is stabilising.
Inflation appears to be back under control. While not yet at the Bank of England’s 2% target, it has settled at between 3% and 4%, opening the door to further rate cuts. What’s more, the Autumn Budget came and went with far less impactful policies than previously feared. And house price data indicates that the worst of the market slowdown is behind us.
However, for investors looking to protect yields, manage risk and take advantage of emerging opportunities, it’s still important that they’re aware of the trends that could dominate the market across the next 12 months.
With that in mind, this blog will outline some of the key things that brokers and landlords should consider:
- Managing leverage in a more stable rate environment
Firstly, while interest rates are moving in a more favourable direction, it would be wrong to suggest that there will be a rapid return to the ultra-low borrowing costs of previous years. As a result, landlords could focus on managing leverage and controlling long-term costs in the coming months.
Recognising this, RAW Mortgages recently launched a new overpayments feature. This allows borrowers to make a fee-free overpayment of up to 10% of the outstanding loan balance once per year, providing landlords with greater flexibility to reduce leverage, build equity and manage interest costs over time.
For portfolio landlords in particular, this added flexibility could be invaluable in 2026. Overpayments can be used to strengthen LTVs ahead of refinancing, manage cashflow more effectively, or create headroom for future acquisitions, without locking investors into rigid repayment structures.
- The Bank of England’s influence on borrowing costs
Yet again, the Bank of England’s policymaking will remain central to the outlook for landlords and brokers this year. With inflation easing and the OBR suggesting that the Autumn Budget could be disinflationary, forecasts suggest that rates could fall to 3% or 3.25% by the end of the year.
However, policymakers have been clear that any reductions will be gradual and data-driven, rather than a rapid return to ultra-low rates. As a result, mortgage costs may continue to edge down, but landlords should plan on the basis of incremental change.
Come what may, the fact that the markets suggest that we’re reaching the point at which the base rate remains at its current level or lower for some time, experts suggest that this dynamic is ushering in fresh confidence and stability. It means that falling mortgage costs will allow house prices to grow without negatively impacting affordability too much. This should result in a more active market.
- Regulatory change and implementation
Regulation will continue to loom large for landlords in 2026, with the implementation phase of several major reforms now approaching.
From 1 May 2026, the Renters’ Rights Bill will reshape the private rented sector, driven by the move to periodic tenancies, restrictions on rent increases and the removal of Section 21 evictions. If they have not already done so, landlords will need to review tenancy agreements, update internal processes and ensure they are prepared for a more prescriptive compliance environment.
Alongside this, EPC requirements remain firmly in focus. Last year, it was widely reported that a new measurement framework could be introduced to avoid penalising properties heated by electricity. Under the proposed system, ratings would place greater emphasis on heating systems, fabric performance and the presence of smart meters.
While landlords have time before minimum standards are enforced – with new tenancies requiring a minimum EPC rating of C from 2028 and existing tenancies from 2030 – assessing properties under the revised criteria could help identify where upgrades may be needed. Prioritising assets most at risk of non-compliance and factoring improvement costs into longer-term planning will be essential.
- Identifying differences and rental yield hotspots
Regional divergence is another key theme landlords and brokers should be monitoring in 2026, both in terms of house price growth and rental yields.
While parts of London and the South East are expected to see relatively subdued performance, other regions are attracting investor interest – according to Rightmove data. The North East, the Midlands and parts of the North West, for example, are being highlighted as potential rental yield hotspots, supported by stronger affordability, employment growth and sustained tenant demand.
For landlords, therefore, diversifying portfolios beyond core markets could help improve income resilience and overall performance.
However, investing in less familiar locations brings its own considerations, from local market dynamics to lender appetite. As such, working with specialist lenders that assess cases on their individual merits can make it easier to capitalise on regional opportunities as they arise.
- The overhaul of the property buying system
Finally, last year’s announcement that the government would bring in a Scottish-style house buying process will have a big impact on landlords. Under the proposals, accepted offers will now be binding, reducing risks of gazumping and gazundering, and providing more certainty when selling.
What’s more, sellers will need to provide detailed property information upfront, so landlords should ensure EPCs, compliance certificates, and maintenance records are up to date. Also, digitisation of conveyancing promises speed up transactions – brokers and landlords might need to be prepared for a faster process.
While it will mean that sellers will need to carry out a bit of extra work, it should speed up transactions across the market, allowing investors to move more quickly. However, this could also lead to higher levels of competition, so landlords must ensure that they’re working with lenders who can provide finance at speed.
Takeaways and how RAW can help
At RAW Capital Partners, we’re committed to ensuring that landlords and brokers feel as supported as possible this year.
As such, our focus this year is to offer tailored mortgage solutions, expert guidance on portfolio strategy, and fast access to finance, helping you or your clients act confidently in 2026.
Whether you’re managing leverage, refinancing, or expanding into new regions, RAW is here to simplify the process and maximise your opportunities.
Get in touch today to see how we can help you make 2026 your most successful year in property investment yet: https://rawcapitalpartners.com/