With the news of the UK Finance buy-to-let mortgage market update, Heather Hancock, head of credit and operations at Black & White Bridging, has commented in the piece below:
“The latest UK Finance figures paint a more complex picture of the buy-to-let market than headlines might suggest. While it’s true that buy-to-let lending saw a notable increase compared to the previous year, this growth is likely being driven by professional and institutional landlords rather than the smaller investors who have historically formed the backbone of the sector.
The rise in rental yields and improved interest cover ratios indicate that landlords who can weather the storm are still seeing opportunities, but the fundamental challenges remain. Higher taxation, tighter regulation, and affordability constraints continue to squeeze out smaller landlords, making buy-to-let increasingly the domain of those with significant capital reserves.
We also can’t ignore the fact that while lending volumes are up, possessions have also increased by nearly 30% year-on-year. This suggests a market that remains under significant pressure, with some landlords exiting while others with deeper pockets move in. The market may not be collapsing, but it is undeniably shifting towards a more consolidated landscape where only the most well-resourced investors can thrive.”
