The Proplytics Investor Monthly April 2026
Welcome to the Proplytics Investor Monthly. Your data-led briefing on what's moving in UK property investment.
Base Rate Held, But Mortgage Costs Climb
The Bank of England held the base rate at 3.75% on 19 March, and markets now expect it to stay there for most of 2026. But the picture for borrowing costs has shifted sharply. Average two-year fixed mortgage rates have climbed above 5.5%, while five-year fixes sit at 5.54%. Over 1,500 mortgage deals have been pulled from the market in recent weeks as lenders adjust to rising global inflation risk. For leveraged investors, the cost of debt is now a central factor in every acquisition decision.
The Landlord Exodus Deepens
An estimated 93,000 landlords left the private rented sector in 2025, and forecasts suggest a further 110,000 could follow in 2026. Rising costs, tighter regulation, and the shift in tax treatment have pushed smaller operators to sell. The result is a shrinking supply of rental stock at a time when tenant demand remains strong. For investors who stay in the market, reduced competition and upward pressure on rents could translate into stronger yields over the medium term.
Renters' Rights Act Takes Effect 1 May
From 1 May 2026, the Renters' Rights Act introduces major changes. Section 21 "no-fault" evictions end, fixed-term tenancies are replaced by rolling contracts, and new rules limit discrimination in tenant selection. Landlords will need to review their management processes carefully. Those using professional property management or data-led tools will be better placed to adapt. Our Investor Standard report (£495) includes regulatory impact analysis to help you understand how these changes affect specific locations and property types.
Northern Yields Continue to Outperform
Regional yield data confirms a familiar pattern. Manchester (5.61%) and Leeds (5.41%) continue to lead the rental yield tables, with the North East and parts of Scotland also delivering strong returns thanks to lower entry prices and robust tenant demand. Southern markets, particularly London, remain yield-compressed despite higher capital values. Investors seeking income-led strategies should look north. For a full postcode-level breakdown of yields, capital growth, and tenant demand, explore the Investor Pro report (£895).
Limited Company Structures Gaining Ground
The shift to limited company ownership continues to accelerate. Around 20% of landlords now hold at least one buy-to-let mortgage through a company, rising to 30% among portfolio landlords. Among those planning to expand, 63% said they would use a limited company for their next purchase. The tax advantages of corporate ownership, particularly around mortgage interest relief, are making this the default structure for serious investors.
The bottom line: rising mortgage costs, regulatory change, and landlord exits are reshaping the market. Investors with access to accurate, location-specific data will be best positioned to find value. Start your analysis at proplytics.kabware.co.uk.