There has been a fair degree of positivity about the buy-to-let sector as we lead into another important year, for both it and the wider PRS in general.
Despite some narratives deeming otherwise, demand for rental homes remains strong, property supply is still tight in many areas, and landlords continue to step in where owner occupation is not possible or indeed preferable. For advisers, this means buy-to-let should remain a core part of the advice mix with opportunities available to grow income in this area.
Forecasts, particularly from IMLA, point to a period of steady growth rather than sharp swings. That is no bad thing. A more settled outlook allows landlords, lenders and advisers to plan with greater confidence. It also creates space to focus on quality of lending, good advice, sensible portfolio building and long-term sustainability rather than short-term reactions to policy or rate changes.
Purchase lending is set to rise
One of the more positive signals from IMLA is the expected increase in new buy-to-let purchase lending over the next couple of years. This reflects the fact that, despite higher regulation and added costs, many landlords still see good reasons to invest. Rising rents, improving yields and falling mortgage rates are all helping to restore balance to the numbers.
Our own Rental Barometer data shows average rental yields across England and Wales continuing to move up, reaching 7.7% in Q4 2025, with several regions now at or above 8%. That matters, because yield underpins confidence. When yields improve, landlords are better placed to meet affordability tests, manage costs and still plan for growth. For advisers, this creates more workable cases and more realistic options for clients looking to buy.
The remortgage opportunity should not be ignored
While new purchases are important, the remortgage market may offer the biggest single opportunity in the near term. IMLA forecasts buy-to-let remortgage lending will rise to £28bn this year, up from £26.5bn in 2025, before reaching £29bn in 2027. That is a large pool of existing landlord borrowers who will need advice, support and clear options as their deals come to an end.
Many of these landlords fixed at higher rates over the last two years and will now find a more competitive pricing environment. Falling mortgage rates are already improving affordability, and this is likely to continue into 2026. We recently launched a new range of remortgage product options and it’s obvious to us that advisers who stay close to their landlord clients, review portfolios early and look beyond simple rate switches will be well placed to add real value.
Change in the PRS will drive churn, not exit
IMLA has also suggested that the Renters Rights Act will increase churn within the private rented sector. That assessment feels right. We are likely to see some smaller, one/two-property landlords decide that the added duties (and costs) are not for them. However, that does not mean homes leaving the sector. Instead, those properties are likely to be bought by professional and portfolio landlords who already understand the rules and have the scale to manage them.
This shift creates a clear advice opportunity. Existing landlords can use equity within their current portfolios to fund deposits for further purchases, often refinancing at the same time. For advisers, this is about looking at the whole position, not just a single property or loan, and helping clients think about structure, cash flow and long-term portfolio plans.
Costs are rising, but so is support
There is no denying that landlords face extra costs as they meet their Renters Rights Act duties. However, there is also good news on several fronts. Mortgage rates are easing, rental values continue to rise in many areas, and yields are improving. Taken together, these factors help to offset the added expense and support the case for continued investment.
Buy-to-let in 2026 is therefore not about quick wins or bold promises. It is about steady growth, careful advice and making the most of clear opportunities in both purchase and remortgage activity.
The private rented sector still fills a big need and a significant housing gap, and landlords will continue to be part of the solution. Advisers who understand this, and who take a long view with their clients, will find that buy-to-let remains a strong and rewarding area of business to explore and complete on.
