Buy to Let Lending Growth Matches Homebuyer Activity in UK Mortgage Market
Summary:
Buy to let mortgage lending in the UK has grown at a quarterly average rate of 7% over the past year, matching the pace of loans taken out by first-time buyers and home movers. This trend reflects improving mortgage rates and greater product availability, signalling continued investor confidence in the private rented sector despite recent regulatory changes.
SEO Focus Keyword: buy to let mortgage lending
SEO Meta Title: Buy to Let Mortgage Lending Growth Matches Homebuyers in UK
SEO Meta Description: Buy to let mortgage lending in the UK is growing at the same rate as homebuyers, supported by better rates and product availability for landlords.
Buy to Let Lending Growth Keeps Pace with Homebuyers
Buy to let (BTL) borrowing in the UK has been rising steadily, expanding at an average quarterly rate of 7% over the last year, according to research by mortgage brokers Alexander Hall. This growth rate matches that of first-time buyers and home movers, indicating that landlords remain active in the market despite ongoing regulatory challenges.
In the third quarter of 2025, the latest period for which data is available, £6.6 billion was advanced to landlords. Although this represents just 8.2% of total mortgage lending, it marked a significant 22% increase on the previous quarter and was 26% higher than the same period in 2024.
What the Data Shows About Landlord Activity
Alexander Hall’s managing director, Richard Merrett, commented on the findings: “While some amateur landlords may have chosen to exit the sector following a string of government regulatory changes designed to dent portfolio profitability, the idea of a widespread landlord exodus simply isn’t reflected in the lending data.”
He added, “In fact, our analysis shows that buy to let lending has been growing at the same pace as both first-time buyer and home mover activity over the last year, which underlines that investor appetites remain very much alive.”
Merrett also highlighted improvements in the mortgage market that have supported this growth: “Of course, there have been some notable improvements to the mortgage landscape which will have helped to fuel the fire, with lower rates, greater product availability, and more favourable monthly repayments all helping to support landlord margins and reinforce buy to let’s position as one of the more stable long-term investment options available.”
He concluded, “As confidence continues to return across the mortgage market, we expect this momentum to carry forward into 2026 as the buy to let sector continues to defy the narrative that landlords are calling time and looking to exit.”
Broader Mortgage Market Trends
The brokerage analysed historic data from the Bank of England, focusing on quarterly gross advances by loan purpose to assess performance across different segments as market conditions stabilised. While buy to let lending matched the growth rates of owner-occupier segments such as first-time buyers and home movers, remortgaging activity grew even faster, expanding by an average of 12% as households sought to refinance amid improving mortgage deals.
What This Means for UK Landlords
The steady growth in buy to let lending suggests that UK landlords continue to see the private rented sector as a viable long-term investment despite regulatory pressures. Improved mortgage rates and a wider range of products have helped maintain landlord margins, making it easier for investors to secure finance and manage repayments.
For landlords and letting agents, this trend indicates a stable lending environment and ongoing demand for rental properties. It also suggests that the narrative of landlords exiting the market en masse may be overstated, with many investors continuing to expand or maintain their portfolios.
Looking Ahead
With momentum in the buy to let mortgage market expected to continue into 2026, landlords can anticipate a lending landscape that supports investment and portfolio growth. This environment may encourage both new and existing landlords to consider opportunities within the private rented sector, backed by favourable financing conditions.
Suggested internal link anchors
- buy to let lending
- mortgage rates
- private rented sector
- landlord margins
- portfolio profitability
- mortgage product availability
- first-time buyers
- home movers
- remortgaging
- mortgage market trends
TLA update
TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.property118.com