Buy-to-let is alive and kicking – and the figures prove it

Earlier this month, I took part in a panel discussion at Mortgage Business Expo (MBE) London, where we considered the current state of the buy-to-let market, the challenges facing landlords and the opportunities available to mortgage advisers.

One of the strongest messages I wanted to get across was that, despite some of the negative headlines we continue to see about the private rental sector (PRS), buy-to-let remains very much alive and kicking, and there are plenty of reasons to be positive about its future.

Indeed, the day after our panel discussion, UK Finance published its latest Q2 2026 buy-to-let lending figures, which provided further evidence that the reality of the market is rather different from the narrative we often hear.

The figures showed 58,051 new buy-to-let loans advanced during the quarter, worth £10.7 billion, representing increases of 20.6% in loan numbers and 25% in lending value compared with the same period last year. Product Transfer business continued to grow, up to 86,300 in number accounting for £15.1bn of lending.

Average gross rental yields also remained steady at 7.27%, while the number of buy-to-let mortgages in arrears fell compared with the previous quarter.

These are encouraging figures which demonstrate that landlords are continuing to borrow, refinance and invest, even against a backdrop of higher costs, changing regulation and wider economic uncertainty.

A more professional landlord market

Of course, that does not mean the market is standing still, and one of the points I made during the panel was that we are witnessing another important chapter in the continued professionalisation of buy-to-let.

Today’s landlords are increasingly tax-aware, portfolio-minded and focused on the long term, with investment decisions driven by financial performance, property choice and the ability to manage changing requirements.

I suggested there are broadly three groups of landlords operating in today’s market, each with different needs and priorities.

The first is the accidental landlord, who may be questioning whether they want to remain in the sector; the second is the growth landlord, who is considering how to expand their portfolio; and the third is the professional investor, who is focused on improving the performance of an established property business.

What connects all three is their need for professional mortgage advice, albeit advice which reflects their individual circumstances, ambitions and plans.

Opportunities for advisers

With approximately £60 billion of buy-to-let lending written in 2022, a significant refinancing wave is approaching as five-year fixed-rate deals mature. This presents a major opportunity for advisers to engage with landlords who may be facing very different interest rate and affordability dynamics than when they originally took out their mortgage.

For landlords, refinancing is increasingly about more than securing another mortgage rate, with decisions around portfolio structure, future investment, property improvements and borrowing requirements all becoming part of the conversation.

For advisers, this creates an opportunity to build stronger, longer-term relationships with landlord clients, supported by lenders who understand the increasingly varied needs of property investors.

There will undoubtedly be further challenges for the sector – future Renters’ Rights Act and EPC requirements being just two – but the latest lending figures should provide considerable reassurance about its underlying strength.

Buy-to-let is not disappearing; it is changing, becoming more professional and continuing to provide opportunities for landlords, advisers and lenders who understand where the market is heading.