The story of Trending Market Sectors often begins with a simple conversation. A landlord notices demand shifting. A business owner sees new opportunities emerge. A homeowner wonders how changing market conditions affect borrowing decisions. At Connect Mortgages, Trending Market Sectors are not just statistics. They represent real decisions, real growth, and real financial planning across the UK mortgage landscape.
Understanding how these sectors evolve helps borrowers, investors, and advisers make informed mortgage decisions in an ever-changing market.
What is the Market Saying About Renters?
The story of Trending Market Sectors is evident in today’s rental market. What once suited mainly younger tenants has evolved into something broader. Renting is no longer a temporary phase. It is now a long-term housing option for people of all ages.
In December 2022, Mortgage Strategy highlighted a shift supported by government data. The data showed that rental demand is growing among older age groups. Over the last ten years, the number of renters aged 45 to 65 increased by around 70 per cent. This confirms a structural change in the rental landscape.
The number of renters aged 55 to 64 has doubled during this period. These figures show how Trending Market Sectors are reshaping demand and creating new considerations for landlords and investors.
Research from Paragon, based on a survey of more than 2,000 tenants, supports these findings. Almost half of renters aged 45 to 64 said they aspire to own a home. However, only a small proportion were actively saving towards a purchase. This highlights affordability pressures rather than a lack of desire to buy.
Within this group, some renters were financially ready and searching for property. Others were still preparing. Most remained in the saving stage. This confirms that renting will continue to play a central role within Trending Market Sectors for the foreseeable future.
What Does This Mean For Landlords?
The increase in renters aged 45 to 65 has practical implications for landlords operating in Buy-to-Let mortgages and the wider property investment market.
- Expanding tenant demand: A wider age range of tenants increases overall demand for rental homes. This can support rental stability in areas where demand from younger renters fluctuates.
- Changing tenant expectations: Older renters often seek longer tenancies, well-maintained homes, and predictable costs. Landlords may need to adapt property standards and management strategies to meet these expectations.
- Potential future turnover: Many renters still aim to buy property. Over time, this may lead to planned tenant turnover as individuals move towards homeownership.
- Investment planning opportunities: Landlords who understand market trends can align their investment strategy with long-term demand. This includes property types suitable for professional tenants and downsizers.
Why Invest in Buy-to-Let?
Buy-to-let remains a key segment of Trending Market Sectors, driven by continued rental demand and long-term housing needs.
Market data published in 2023 showed strong buy-to-let lending activity. UK landlords invested billions in rental property in early 2022, underscoring continued confidence in the sector.
A Buy-to-Let Mortgage is required when purchasing property for rental purposes. Lenders assess affordability based primarily on rental income rather than personal earnings. In some cases, additional income sources may also be considered.
Buy-to-let mortgages usually require larger deposits than residential mortgages. The application process focuses on rental yield, property type, and lender criteria.
Speaking with a qualified mortgage adviser can help clarify borrowing options. An adviser can explain lender expectations, rental income calculations, and ongoing costs linked to property ownership.
Mortgage advice is especially valuable when considering tax treatment and affordability planning. Rental income is usually taxable, and understanding these implications is essential before investing.
Is Buy-to-Let right for you?
Many people consider buy-to-let as a way to generate income and build long-term value. However, it is important to assess suitability carefully.
Recent changes in tax rules and stamp duty surcharges mean buy-to-let carries higher costs than in the past. Deposits of around 25 per cent are commonly required, which can limit accessibility.
Potential benefits
- Rental income may help cover mortgage payments
- Property investment can support long-term financial planning
- Certain costs may be offset through allowable expenses
Potential challenges
- Additional stamp duty applies to most purchases
- Vacant periods can reduce income
- Maintenance and repairs remain the landlord’s responsibility
Understanding both benefits and risks helps ensure informed decision-making.
Buy-to-Let Through a Limited Company
Limited company ownership has become more common within Trending Market Sectors. Many landlords use this structure to manage tax exposure and portfolio growth.
A limited company pays Corporation Tax on profits rather than Income Tax. Rental income and sale proceeds belong to the company rather than the individual.
Capital Gains Tax allowances do not apply to companies. For single or lower-value properties, personal ownership may still be more suitable. For larger portfolios, company ownership may offer planning advantages.
Transferring property into a company can trigger Stamp Duty and Capital Gains Tax. Professional tax advice is essential before making this decision.
Some investors choose alternative assets, such as shares or funds, due to higher property taxes. Buy-to-let returns must now account for higher ongoing costs.
Responsibilities and Risk
Becoming a landlord involves legal and financial responsibility. Landlords must provide safe, habitable housing and comply with applicable regulations.
Typical responsibilities include:
- Tenant referencing and agreements
- Deposit protection
- Rent collection
- Property maintenance
- Safety checks for gas, electricity, and fire protection
- Compliance with energy efficiency and repair standards
Failure to meet obligations can result in penalties and financial loss.
Why Due Diligence Matters
Buy-to-let mortgages carry risk. Rental income is not guaranteed, and market conditions can change. Interest rate increases and fluctuations in property values can affect affordability.
Before applying, lenders usually require that the property:
- Is located in the UK
- Is not an HMO unless permitted
- Is let under an assured shorthold tenancy or company let
- Meets minimum valuation requirements
- Has an acceptable EPC rating
Careful planning and research help manage these risks effectively.
The message
Whether choosing a Buy-to-Let Mortgage or a Limited Company Mortgage, the core principle remains the same. Property investment requires understanding, preparation, and realistic expectations.
At Connect Mortgages, our advisers understand property investment and Trending Market Sectors. We help clients explore options, assess affordability, and make informed decisions aligned with their goals.
Thank you for reading our “Trending Market Sectors | Mortgage Insights by Connect” publication. Stay “Connect“-ed for more updates soon!
