UK Landlords Adapting Rather Than Exiting The Market
For all the noise about a so-called landlord exodus, the latest mortgage data tells a calmer, more nuanced story. It doesn’t appear that UK landlords are vanishing en masse. Instead, many appear to be adjusting their approach as the buy-to-let market changes shape.
Figures from UK Finance show that buy-to-let mortgages are quietly bouncing back. In the three months to the end of September, 59,467 new loans were agreed, up 23% year on year. That is not the behaviour of a sector whose members are streaming towards the exit.
Buy-to-let mortgages show renewed momentum
Remortgaging made up the bulk of that growth. Around 40,697 loans were taken out by existing landlords refinancing, a rise of 32% compared with the same period last year. New purchase lending also edged up, with 16,885 loans agreed, a 4% increase.
James Tatch of UK Finance believes: “The rumours of the demise of the buy-to-let sector have been greatly exaggerated.” He acknowledged it is tougher than a decade ago, largely due to tax and regulatory changes, but added that profits are still achievable with the right properties.
Policy pressure has changed behaviour, not ended it
There is no denying landlords face headwinds. Mortgage rates remain higher than many were used to, the stamp duty surcharge on additional properties has risen from 3% to 5%, and the Renters Rights Bill has added further obligations.
The new legislation makes it harder to evict tenants, removes fixed-term tenancies and gives renters more scope to challenge rent increases. All of that increases cost and complexity.
Yet UK Finance describes the decline in buy-to-let stock over recent years as modest. That choice of word is telling. Some landlords have sold up, but many others are consolidating, refinancing or changing strategy.
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Rental yields are doing more of the heavy lifting
One reason landlords are staying put is yield. Average gross rental yields across the UK reached 7.15% over the period, up from 6.93% a year earlier.
Mortgage rates on buy-to-let loans averaged 4.85% between July and September, slightly higher than earlier in the year. The gap between borrowing costs and rental income is tighter than it once was, but in many areas it still stacks up.
Location is key. Returns outside London remain stronger overall, although Tatch asserted that good opportunities still exist in the capital for landlords willing to look carefully.
Fewer landlords, but more focused ones
Data from Hamptons adds another layer. Investors accounted for 10.9% of home purchases in 2025, down from 12% in 2024 and well below the 15.8% seen in 2015.
That suggests the buy-to-let market is smaller, but not disappearing. Those remaining are often more professional, more yield-driven and more conscious of risk.
HMO lending rising by 8% year on year supports that idea. Meanwhile, buy-to-let loans for new-builds dipped slightly, down 1.7%, hinting at caution around pricing and future resale values.
Adapting rather than exiting
Taken together, the data points to adaptation. Landlords are refinancing to manage costs, focusing on higher-yielding regions and property types, and reassessing where capital works hardest.
The era of easy gains is long gone. But the evidence suggests reports of a mass landlord exodus miss the mark. The buy-to-let market is evolving, not collapsing, and those who remain are doing so with eyes open.
