With the latest UK Finance BTL Lending update for Q1 2026 having been released, experts from across the mortgage and property industry have shared their reactions and thoughts on what the figures mean for the market moving forward.
Industry reaction:
“The latest figures from UK Finance show the buy-to-let market is in good health. Mortgage volumes in Q1 were up 3% by number and 7% by value year-on-year, driven by remortgage activity. While some smaller landlords have chosen to exit amid higher costs and regulatory change, larger portfolio landlords continue to invest and adapt. The trend shows the buy-to-let market is becoming more professional, not less resilient.
Importantly, that transition has not been accompanied by rising levels of distress. Buy-to-let arrears remain low, demonstrating the sector’s resilience despite a challenging economic backdrop.
For lenders and servicers, the priority is ensuring they have the technology, data and operational agility to support a changing landlord base. As portfolios become more sophisticated, servicing will play an increasingly important role in maintaining performance, identifying risk, and delivering better customer outcomes, and so it’s vital that lenders have the right servicing partner.”
Richard Pike, sales and marketing director at Phoebus Software
“Raheel Butt, Head of BTL Underwriting at specialist lender MT Finance, says:
“The latest Q1 data from UK Finance shows an incredibly resilient buy-to-let sector. With figures showing a total lending volume of £10.8 billion across more than 58,000 loans, this proves that property investment remains a highly attractive, core asset class.
What we are seeing is a strategic restructuring of the market. The 11.1% surge in remortgaging activity highlights a proactive landlord community. Savvy investors are taking control and optimising their existing portfolios. While high borrowing costs and preparation for the Renters’ Rights Act naturally caused a temporary dip in new house purchases, the fundamental demand for quality rental housing across the UK is stronger than ever.
Crucially, the 6% quarter-on-quarter drop in mortgages in arrears, bringing the total down to just 0.47% of the market, is a fantastic indicator of stability. It shows that professional landlords are managing their leverage exceptionally well. It also underscores the value of robust, common-sense underwriting.”
Raheel Butt, Head of BTL Underwriting at specialist lender MT Finance
“Although the implementation of the Renters’ Rights Act was imminent during the period this data covers, it doesn’t seem to have deterred landlords. An increase in new buy-to-let loans advanced in the first quarter of the year, up compared with the same period the previous year, points to investors who still recognise opportunities in the market. Perhaps the uptick in average yields explains that – investing in rental property is still working for many landlords and experienced ones in particular are expanding their portfolios where opportunities arise.
Landlords continue to favour fixed-rate mortgages for the certainty they bring in what are volatile times in terms of pricing, with the number opting for variable rate loans falling. The average interest rate across new BTL loans was six basis points lower than the previous quarter and 29 basis points down on the same quarter last year, with this downwards trend a further factor encouraging landlords to invest. With the average interest cover ratio rising thanks to falling lending rates, landlords are not overstretching themselves.
With the number of landlords in arrears falling and possessions unchanged, the outlook for the sector is brighter than one might think given that the regulatory and tax burden on investors is increasing. The sector is becoming more professional and with more landlords incorporating in order to maximise returns, there are plenty of opportunities out there. However, now is not the time for further interference from government – the sector needs time to settle and get to grips with recent legislative changes.”
Mark Harris, chief executive of mortgage broker SPF Private Clients
