Buy-to-let lending is expanding at the same pace as first-time buyers and home movers, challenging persistent claims of a landlord exodus.
Analysis by Alexander Hall of historic Bank of England data shows average quarterly growth of 7% in the buy-to-let sector over the past year, matching the rate recorded across both first-time buyer and home mover lending.
In Q3 last year, £6.6bn was advanced across buy-to-let, representing 8.2% of total mortgage lending. While still the smallest segment of the market, this marked a 22% quarterly increase and a 26% rise year-on-year.
Only remortgaging activity outpaced buy-to-let, with average quarterly growth of 12%, reflecting strong refinancing demand as rates eased and affordability improved.
CONTINUED GROWTH
The figures align with latest Q3 2025 data from UK Finance, which shows the value of new buy-to-let lending up 28% year-on-year, with loan volumes rising 23%.
Forecasts from the Intermediary Mortgage Lenders Association also point to continued growth through 2026 and 2027 as rates fall further and lending conditions strengthen.
Richard Merrett, managing director of Alexander Hall, says: “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.
“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.”
FUELLING THE FIRE
He added: “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.
“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.”
