Buy-to-let (BTL) sentiment has remained stable as landlords continue to make "clear and considered decisions" about their portfolios, Landbay has revealed.

The BTL lender's latest survey revealed that landlords are becoming more decisive in their portfolio strategies, as a majority do not plan to either buy or sell over the next 12 months. A significant proportion are still planning to act, which it said shows that activity remains balanced rather than subdued.

Just over half (51.9%) said they do not currently plan to purchase additional properties, while 35.3% are planning to add to portfolios.

At the same time, the lender found that selling intentions remained consistent with previous findings, suggesting ongoing reshaping rather than any large-scale exit from the sector.

Despite this stability, Landbay said there is a growing gap between landlord confidence in their own portfolios and the view of the wider economy.

When asked about their confidence in terms of their individual BTL businesses, 41.4% of landlords described themselves as neutral. A further 21.8% were positive and 36.8% were negative.

However, confidence in the UK economy remained more downbeat, as 69.2% expressed a negative outlook, while just 3.8% were positive.

The BTL lender said this reflects a market where landlords are focused on what they can control themselves, such as portfolio performance and financing, while remaining cautious about the broader economic outlook.

Sales and distribution director at Landbay, Rob Stanton, said: "The key difference compared to the results of our previous survey is that sentiment and confidence appears to have stabilised, even during a somewhat turbulent few months, particularly when it comes to product availability and rates.

"Landlords, for the most part, appear to be very confident about their own property businesses, and the future of their investments, even when their views on the future performance of the wider economy remain far more sceptical.

"What we are therefore seeing is a landlord community which is predominantly focused on what they can control. They are making clearer decisions on whether to buy, sell or hold, and are continuing to adapt their strategies to ensure their portfolios remain profitable. It is also clear many landlords continue to achieve strong yields, which underpins their ability to remain active in the market, even in a more challenging environment."

The results have shown that landlords continue to favour fixed-rate products, with 87.2% indicating a preference for two-, three- or five-year fixed rates as their next mortgage.

Despite increased discussion around tracker products in the market, just 6% of landlords said they were likely to choose this option for their next mortgage, underlining the continued demand for certainty and stability in borrowing costs.

Stanton concluded: "When it comes to borrowing, the preference for fixed rates remains very strong. Even with more discussion around tracker products, landlords are still prioritising certainty, particularly those looking to plan over the longer term.

"At the same time, a large number of landlords are still on higher-rate mortgages arranged when pricing was less favourable. Even with recent changes, the current environment still presents a clear opportunity for brokers to communicate with those clients and potentially secure improved outcomes."

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