Buy to let (BTL) mortgage lending has grown at an average quarterly rate of 7% over the last year, matching the pace of first-time buyer and home movers.
Finance company Alexander Hall – part of the Foxtons Group – has analysed lending data from the Bank of England on quarterly gross mortgage advances by purpose of loan.
This shows that in Q3 of last year (the latest available), £6.6 billion was lent across the buy to let sector.
While BTL mortgages remain the smallest segment of the mortgage market, accounting for 8.2% of total lending, this Q3 figure represented a 22% increase on the previous quarter and a 26% increase when compared to Q3, 2024.
And BTL lending has expanded at the same 7% quarterly rate as both first-time buyer and home mover lending.
The firm claims that this shows how, despite regulatory change and landlords leaving the sector, borrowing demand remains resilient.
It suggests that is supported by UK Finance data for the same Q3 period, showing that the value of new BTL lending has risen by 28% year on year, while the number of new BTL loans issued has increased 23% over the same period.
It also aligns with forecasts from the Intermediary Mortgage Lenders Association released in December.
These expect lending activity across the mortgage market to continue growing through 2026 and 2027 as interest rates ease, affordability improves, and lending conditions become more supportive.