Buy-to-let mortgage lending increased by 26% in the third quarter of 2025 compared to the same period in 2024, according to analysis of Bank of England data by mortgage brokerage Alexander Hall.
The sector recorded £6.6 billion in lending during Q3, representing a 22% increase on the previous quarter. This growth rate marks an average quarterly increase of 7% over the past year.
Market share and lending volumes
Buy-to-let mortgages accounted for 8.2% of total mortgage lending in the quarter, maintaining their position as the smallest segment of the mortgage market. However, UK Finance figures from the same period show the value of new buy-to-let lending rose by 28% year-on-year, while the number of new loans issued increased by 23%.
The growth in buy-to-let lending matched the pace of first-time buyer and home mover activity over the past year. Only remortgaging activity recorded stronger growth, with an average quarterly increase of 12%, driven by borrowers refinancing as interest rates and affordability improved.
Regulatory context
The lending data emerges against a backdrop of regulatory changes affecting the private rental sector. Richard Merrett, Managing Director at Alexander Hall, stated: “While some amateur landlords may have chosen to exit the sector following a string of Government regulatory changes designed to dent portfolio profitability, the idea of a widespread landlord exodus simply isn’t reflected in the lending data.”
Merrett attributed the sustained lending activity to improvements in the mortgage market, including lower rates, increased product availability, and more favourable monthly repayments.
The figures suggest landlord investment in the rental property market has remained resilient despite policy changes and reports of landlords leaving the sector.
