The UK buy-to-let market is showing signs of resilience and gradual recovery, supported by improving financing conditions and a more balanced property market. According to forecasts from the Intermediary Mortgage Lenders Association (IMLA), gross mortgage lending in the UK is expected to rise to around £320 billion in 2026, with a further increase to approximately £350 billion in 2027. Buy-to-let lending is projected to grow from roughly £39 billion in 2025 to £44 billion in 2026 and £48 billion in 2027.

This outlook reflects a wider improvement in affordability driven by lower interest rates and a stabilising economic context. As borrowing conditions ease, a broader cross-section of investors, particularly professional landlords…may find it easier to support acquisitions or refinances for rental properties. The forecast growth in buy-to-let lending is complemented by stronger rental yields in many regional markets, which have helped underpin investor cash flow assumptions.

The anticipated lending growth is also occurring alongside a shifting landlord base, as smaller amateur investors leave the sector and more experienced operators increase their exposure. This could support a gradual professionalisation of the private rented sector, with larger portfolios and institutional-style management models becoming more prominent.

Steady lending expansion is a constructive sign for the buy-to-let market, particularly after a period of constrained activity and regulatory change. For long-term investors focused on income and asset quality, the forecasted increase in lending activity combined with the sector’s structural fundamentals; supports a positive but measured view of buy-to-let prospects over the next two years.

‍