UK Finance Buy-to-Let Update – Q2 2026

 

• In Q2 2026, 58,051 new buy-to-let loans were issued in the UK, worth £10.7 billion. Compared with Q2 2025, the number of loans increased by 20.6 per cent, while their total value rose by 25 per cent. 

• Compared with the same quarter a year earlier, lending activity increased sharply. This largely reflects the impact of stamp duty changes in Q1 2025, which suppressed market activity and resulted in lower levels of lending in Q2 2025, together with increased remortgaging activity driven by high numbers of fixed rate loans expiring. 

• Of the total, 39,631 loans were remortgages, up 17.6 per cent by number and 20.2 per cent by value compared with Q2 2025. Compared with Q1 2026, remortgage activity increased slightly, with 470 more loans issued. 

• Buy-to-let loans for new house purchases totalled 16,026, up 23 per cent by number and 27.9 per cent by value compared with Q2 2025. Compared with the previous quarter, new purchase lending fell by 845 loans. 

• The average gross buy-to-let rental yield for the UK in Q2 2026 was 7.27 per cent, almost unchanged from 7.26 per cent in the same quarter a year previously. 

• The average interest rate across all new buy-to-let loans in the UK was 4.82 per cent in Q2 2026. This was 12 basis points higher than the previous quarter, but 18 basis points lower than Q2 2025. 

• The average buy-to-let interest cover ratio for the UK was 217 per cent in Q2 2026. This was four per cent lower than the previous quarter but up from 210 per cent compared to Q2 2025, reflecting movement in interest rates.  

• The number of buy-to-let fixed-rate mortgages outstanding was 1.46 million in Q2 2026, 0.7 per cent lower than a year earlier. The number of variable-rate loans outstanding fell by three per cent to 450,000. 

• At the end of Q2 2026 there were 8,390 buy-to-let mortgages in arrears over 2.5 per cent. This was down 570 from the previous quarter and down 25.6 per cent compared to Q2 2025. 

• There were 630 buy-to-let mortgage possessions in Q2 2026, down 20.3 per cent from Q2 2025. 

 

James Tatch, Head of Analytics at UK Finance, said: 

“The latest figures point to a more resilient buy-to-let market, but the headline growth should be viewed in context. Activity in the same period last year was artificially low, as borrowers brought forward loans ahead of stamp duty changes, making the year-on-year increases look particularly strong. Compared with Q1 this year, the market appears more stable, with remortgaging edging up while lending for new purchases eased slightly. Looking ahead, higher borrowing costs are likely weighing down on buy-to-let demand, underpinning flatter lending growth across 2026."