The buy-to-let (BTL) market is holding up well despite warnings of a landlord exodus, a leading industry organisation has claimed.
Latest figures from banking trade body UK Finance shows new BTL loans were just 2.6% lower in Q2 this year than in 2024.
There were 49,590 BTL loans advanced in the UK in the second quarter, worth £8.8 billion.
Better yield
And the average gross BTL rental yield was 7.26%, compared with 6.9% last year, UK Finance says.
The average interest rate across all new buy-to-let loans was 5%, which was 2 basis points higher than in the previous three months.
There were 11,270 BTL mortgages in arrears, more than 2% of the outstanding balance. This was down 560 from the previous quarter.
And there were also 790 buy-to-let mortgage possessions, up 11.3%.
Industry reaction
Mark Harris, CEO, SPF Private Clients
Mark Harris, CEO at broker SPF Private Clients, says: “Despite reports of an exodus of landlords amid concerns about the imminent Renters’ Reform Bill, the buy-to-let market does not appear to be faring too badly, as mortgage rates continue to fall and rents increase.
“The lending environment is certainly encouraging, with lenders having plenty of money to lend and are keen to do so.
“Not only have buy-to-let mortgage rates reduced throughout the year, but lenders have also been improving their criteria,” he says.
“Those landlords borrowing via a limited company are also benefiting from a wider choice of products and falling mortgage rates, although these are still pegged higher than for landlords buying in their own name.”
Read the full UK Finance update here