Buy-to-let lender Landbay has agreed a £1 billion deal with an institutional investor to increase its mortgage lending.

It says the funding will support its plans to significantly grow its buy-to-let loan book.

Landbay has seen lending volumes rise by 200% over the last 12 months.

Over the same period, headcount has doubled, prompting the firm to take on additional office space in its central London office.

John Goodall, CEO, Landbay said: “Given the current political and economic situation, this funding is a huge vote of confidence in both the UK’s Private Rental Sector and Landbay itself.

“Demand for high quality rental properties is high and unlikely to slow down any time soon. The reality is that many tenants are keen to distance themselves from the hassle and cost of homeownership. In fact, we know that renting is increasingly seen as a lifestyle choice rather than the default option.

“Landlords are vital for the UK’s economy, and this sizeable injection of capital will allow us to support even more of them and their brokers.”