BUY-to-let mortgages are up 32% in a year as experts say it “blows the mass exodus of landlords narrative out of the water”.
The latest UK Finance data on buy-to-let mortgages shows 59,467 loans were taken out in the three months to the end of September, with 40,697 being for landlords who were remortgaging – up 32% on the same period last year.
The number of buy-to-let loans agreed for new purchases was up 4% at 16,885.
Experts said this contradicts the narrative that there is a “mass exodus” of landlords leaving the industry.
Omer Mehmet, Managing Director at Trinity Finance, said: “If landlords were genuinely abandoning the sector, we wouldn’t be seeing this level of activity in refinancing and new lending. What the data shows is engagement: landlords reviewing their finances, making adjustments and staying invested. That’s a sign of commitment, not exit.
“Buy-to-let has become more complex, so the approach has changed. Decisions are more measured, structures are more deliberate and growth is more selective. But property is still being used as a long-term asset, not something to be written off. The narrative of a sudden collapse doesn’t stack up with what’s actually happening in the market.”
Blows the ‘mass exodus’ narrative out of the water
Wesley Davidson, Property Finance Advisor at Bristol-based FD Commercial & Bridging Ltd, said the market is adapting rather than collapsing.
He continued: “This data blows the ‘mass exodus’ narrative out of the water. Yes, some smaller landlords are selling up amid regulatory pressure, but professional and portfolio investors are clearly doubling down, the market is adapting and resilient, not collapsing.”
Nouran Moustafa, Mortgage Adviser at Roxton Wealth, said the “landlord exodus” narrative is only half true.
She added: “Smaller, less experienced landlords are selling up, mainly due to Section 21 concerns, regulation, and the increasing complexity of running buy-to-let portfolios.
“At the same time, experienced landlords are doing the opposite: restructuring, remortgaging, raising capital, and expanding. That’s a big reason remortgaging is up, many are raising funds to buy properties coming to market from exiting landlords, not just switching rates.
“We’re not really seeing brand new landlords enter. The ‘landlord exodus’ narrative is only half true. Smaller landlords are exiting, while larger, more professional landlords are consolidating and growing. In reality, It’s not an exodus, it’s a consolidation.”
The perfect storm is brewing
Michelle Lawson, Director at Fareham-based Lawson Financial, said “the perfect storm is brewing”
She continued: “The sector has been battered by relentless government burdens and legislation along with Section 24 tax. The smaller ‘dinner party’ landlords are exiting as the grip of Renters Rights start to take hold. Larger investors are seeing an opportunity to expand and diversify with others holding off waiting to see the future landscape.
“Many smaller landlords have had their fingers burned and lost serious sums of money to reckless tenants and the broken eviction system- we are talking tens of thousands- which affects their own finances.
“Those with larger portfolios and the corporate landlords can weather the storms. Whilst there are rogue landlords too, who the system is trying to out, the unintended consequences will mean higher rents, less choice for tenants and more choice for landlords. The perfect storm is brewing.”
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, added: “People still have appetite to use property as a store of wealth and they are still using buy-to-let as part of their retirement strategy.
“The difference is that they are a lot more clued up on the tax implications and more are using company structures than buying property in their own name.”
