Skipton Group’s Mortgage Growth Signals Caution for London Landlords

Skipton Group’s Mortgage Growth: What Landlords Need to Know

In 2025, Skipton Group's mortgage balances increased by 7.9% to £33.3 billion, with first-time buyers accounting for 50% of new lending. This growth signals robust demand for homeownership but is coupled with a decrease in pre-tax profits and a modest rise in mortgage arrears. Although arrears remain below the industry average, these shifts reflect underlying economic pressures that landlords should note.

For London landlords, increased lending to first-time buyers may expand the rental demand pool, especially among younger tenants navigating homeownership more cautiously. However, the slight uptick in arrears may indicate forthcoming challenges in rent payments, requiring vigilant tenant management and proactive measures.

Connells’ Portfolio Expansion Highlights Compliance Complexity

Connells estate agency, part of Skipton Group, now manages over 128,000 rental properties—a scale that underscores the growing reliance on large professional letting agencies. While collaborating with agents like Connells can streamline operations, landlords must remain attentive to compliance demands, including:

• Maintaining up-to-date gas and electrical safety certificates
• Ensuring valid licensing for HMOs and other regulated schemes
• Using tenancy agreements compliant with current laws on deposits and evictions

Smaller landlords should take this moment to assess their own compliance practices carefully.

Practical Implications for Different Landlord Profiles

Single-unit landlords:

• Monitor tenant financial health, particularly among younger renters.
• Keep all safety certificates and tenancy documents current.

HMO and multi-unit landlords:

• Confirm all licensing requirements are met according to local regulations.
• Partner closely with letting agents to ensure compliance workflows are solid.

Portfolio and accidental landlords:

• Regular compliance auditing is crucial.
• Seek professional advice to manage tenancy risks and tenancy support effectively.

Tenant Affordability and Rent Collection: Strategies to Consider

With mortgage arrears rising modestly, landlords should prepare for potential rent payment difficulties by:

• Communicating early with tenants exhibiting financial distress
• Offering flexible payment options when feasible
• Considering rent guarantee insurance or similar products
• Collaborating with letting agents to proactively manage arrears

Next Steps for Landlords and Property Professionals

1. Conduct a Compliance Audit: Review safety certificates, licenses, and tenancy agreements.
2. Assess Tenant Financial Health: Use periodic check-ins or surveys.
3. Verify Letting Agent Compliance: Ensure agents have strong compliance procedures.
4. Strategic Rent Planning: Balance competitive rents with covering rising costs.
5. Prepare Risk Mitigation: Explore insurance and legal strategies to guard against arrears and compliance breaches.

How Rentals & Sales Can Support Your Strategy

Our specialist team provides portfolio reviews, compliance audits, and rent strategy consultations designed specifically for London landlords. We help you:

• Identify and address compliance gaps before they escalate
• Understand tenant market dynamics to optimise rents
• Develop workflows that minimise arrears risks
• Navigate regulatory updates with confidence

Contact us for a tailored consultation that focuses on pragmatic risk management and sustainable portfolio growth.

This article is for informational purposes only and does not constitute legal advice. Landlords should consult qualified professionals regarding specific compliance and tenancy matters.