Buy to let lending in the UK increased by 25 per cent in the second quarter of 2026 compared to the same period last year, with the total value of loans reaching £10.7 billion. This jump coincides with a 20.6 per cent rise in the number of new loans, hitting 58,051, according to UK Finance data. While the headline figures suggest a strong resurgence in landlord borrowing, it is important to remember that lending was unusually subdued in mid-2025. This means the year-on-year growth partly reflects a rebound from a low base.
The increase in buy to let lending comes amid a backdrop of rising rental demand and ongoing housing supply shortages. Investors appear to be capitalising on rental market strength, especially in regions where tenant demand remains robust despite broader economic uncertainty. Our own platform data shows that investor appetite is particularly strong in northern cities and commuter belts, where yields remain attractive compared to London.
However, lenders have tightened criteria since the mortgage market upheavals of previous years. The rise in lending volume suggests that landlords meeting stricter affordability and credit checks are still confident in expanding their portfolios. This could indicate a more selective but determined investor base, focusing on sustainable cash flow rather than speculative growth.
For UK property investors, the key takeaway is that buy to let finance is accessible again but with caveats. The market is not returning to the frothy conditions of the past decade. Instead, landlords who can demonstrate solid rental income and prudent borrowing stand to benefit from current lending conditions. As always, careful due diligence and understanding local rental dynamics remain essential.
