As we move further into 2026, a familiar narrative is starting to reappear. It suggests that a stronger first-time buyer market will be delivered at the expense of buy-to-let. That if one sector gains momentum, the other must lose ground.
It is a simple argument. It is also one that does not reflect how the housing market actually works.
In reality, owner occupiers, renters and landlords sit within the same system. Activity in one part often supports movement elsewhere. Framing first-time buyers and buy-to-let as opposing forces risks missing what is really happening.
WHY LENDERS ARE PUSHING HARDER FOR FIRST-TIME BUYERS
There has been a noticeable shift from high-street/mainstream lenders towards first-time buyers in recent months, and that is perhaps unsurprising given that first-timers have been the biggest single borrower demographic in the last couple of years.
As a result, we have seen higher LTV products, changes to pricing, as well as specific schemes that support moving renters to owner-occupiers.
However, what also appears to have happened is the 2026 first-time buyer market did not start as many expected. A significant bounce appears not to have materialised. January was steady, but not as busy as some had anticipated.
That helps explain why lenders may be pushing harder. Raising LTV limits and adjusting pricing is a way to stimulate demand that has not quite arrived at the level expected. This is not about first-time buyers suddenly crowding out other parts of the market. It is about lenders trying to unlock activity.
FIRST-TIME BUYERS RELY ON THE REST OF THE MARKET MOVING
It is also important to remember that first-time buyers do not operate in isolation. Their ability to buy depends heavily on what is happening further up the chain.
The real blockage in the market might be seen as the ‘middle mover’. When existing homeowners are not moving, the supply of suitable homes for first-time buyers stays limited. No amount of product innovation fully solves that. Neither are we building enough new homes to bridge this gap.
This matters for buy-to-let because constrained movement means continued demand in the rental sector. When people cannot buy or move, they rent for longer. That reinforces the role of the PRS, even in periods when first-time buyer support is being expanded. And that’s without even considering those who a) don’t wish to buy, or b) are not in a position too anyway.
ARE LANDLORDS SELLING TO FIRST-TIME BUYERS?
Another assumption that often follows this debate is that properties sold by landlords are being bought by first-time buyers. In practice, this is far less common than headlines suggest.
The types of properties landlords typically sell do not always align with first-time buyer needs. Location, layout and local demand all play a role. Homes suited to professional lets, shared housing or student demand are often not what first-time buyers are looking for.
What we tend to see instead is landlords selling to other landlords. That reflects the nature of the stock, rather than a simple shift from renting to owning. If so-called amateur landlords are increasingly seeking an exit, their properties are much more likely to be bought by their portfolio counterparts rather than first-time buyers.
RENTAL DEMAND HAS EASED, BUT IT HAS NOT DISAPPEARED
Recent data shows rental tenant demand cooling a little and supply improving. Some have taken this as evidence that the PRS is showing signs of weakness.
I would argue it points to something else. After several years of very high demand coupled with very low supply, the rental market is moving back towards balance. That does not remove the need for rented homes.
As we all know, many renters still face significant barriers to buying. Deposit requirements, affordability and supply all remain challenges, even with more generous first-time buyer products. As a result, rental demand remains structural, not temporary.
MARKETS TEND TO MOVE TOGETHER
Looking back over time, one other pattern stands out. Buy-to-let and owner-occupier activity tend to rise and fall together. When confidence improves, both usually benefit. When uncertainty takes hold, both tend to slow.
The idea that buy-to-let only thrives when first-time buyers struggle does not stand up to scrutiny. Or indeed vice versa. Employment, confidence and access to finance matter across all tenures.
What we are seeing now is not a tug of war, but a period of adjustment, with lenders trying to support activity wherever demand can be unlocked.
WHAT ADVISERS SHOULD TAKE FROM THIS
For advisers, the lesson is to look beyond surface narratives. A renewed focus on first-time buyers does not signal the end of buy-to-let mortgage advice demand. Far from it.
We only need to consider the huge raft of buy-to-let mortgage deals maturing through 2026 to know that landlord borrowers will require advice, especially in a product space which has grown in both number and criteria options.
While some landlords will want the best deal on a like-for-like basis, not seeking to access equity or take further advances, others will certainly be looking to do this in order to fund future purchases.
The market is there, it’s up to advisers to access it.
A SHARED SYSTEM, NOT A ZERO-SUM GAME
Overall, housing works as a system, not as a showdown between tenures. First-time buyers and buy-to-let do not compete in a vacuum. They move together, shaped by confidence, supply and the ability of the market as a whole to function.
As we look ahead through 2026, stability and steady activity matter more than bold headlines. When that happens, both first-time buyers and landlords can find their place, and advisers should ensure they are well-placed to support both.
