We are going through a period of caution in the buy-to-let market, where lenders are more selective and landlords are no longer expanding by default.
That is according to Alex Upton, managing director, specialist mortgages & bridging finance, Hampshire Trust Bank.
Upton said: “We are starting to see lenders become more selective, and in some cases step back from parts of the market. That matters.
“When funding options narrow at the same time as regulatory and cost pressures increase, it creates a more challenging landscape for brokers and landlords to operate within.
“Landlord behaviour is adjusting accordingly. Expansion is no longer the default. Many are reassessing exposure, refining portfolios and prioritising assets that offer stronger and more reliable income.
“More experienced investors are not stepping away, but they are being far more deliberate in how they allocate capital and structure their portfolios.”
Average UK monthly private rents increased by 3.5%, to £1,374, in the 12 months to February 2026, a steady increase in a market with shaky confidence.
Average rents increased to £1,430 (3.6%) in England, £828 (5.5%) in Wales, and £1,022 (2.4%) in Scotland, in the 12 months to February 2026.
In Northern Ireland, average rents increased to £875 (5.2%), in the 12 months to December 2025.
In England, private rents annual inflation was highest in the North East (7.6%), and lowest in London (1.7%), in the 12 months to February 2026.
Upton added: “These conditions are reshaping funding demand. Landlords are not simply refinancing, they are restructuring.
“That means releasing capital selectively, consolidating borrowing and repositioning portfolios to reflect tighter margins and higher compliance expectations.
“It requires lenders who can assess cases on their merits, take a long-term view and structure funding around how portfolios operate in practice.”
