A mortgage lender trade body is predicting steady increases in buy-to-let lending in the next two years, though the market is set to be professionalised thanks to the impact of regulation like the Renters\u2019 Rights Act.<\/p>\n
The Intermediary Mortgage Lenders Association predicted buy-to-let lending to rise from \u00a339bn in 2025 to \u00a344bn in 2026 and \u00a348bn in 2027, aided by rising rental yields and increased market churn exacerbated by the Renters Rights Act.<\/p>\n
Buy-to-let house purchase lending is projected to grow to \u00a312bn in 2026 and \u00a314bn in 2027, as more amateur landlords exit the market, often to be replaced with more professional operators.<\/p>\n
This growth prediction mirrors much of IMLA\u2019s take on the overall mortgage market, as it forecast rising lending, driven by the likelihood of falling interest rates combined with an easing of mortgage regulations.<\/p>\n
The association expects gross mortgage lending to rise by 10.5% from \u00a3228bn in 2025 to \u00a3320bn in 2026. It should then rise by a further 9% to \u00a3350bn in 2027.<\/p>\n
Kate Davies, executive director of IMLA, said: \u201cThe housing and mortgage markets continue to play a vital role in supporting the wider UK economy, and our forecasts show that they are set to remain a source of resilience and growth through 2026 and 2027.<\/p>\n
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\u201cFalling interest rates, rising transaction levels and a recovering buy-to-let market all point to a more positive outlook for lending activity.<\/p>\n
\u201cAs the market grows and becomes more complex, the importance of intermediary advice is greater than ever.<\/p>\n
\u201cIntermediaries play a crucial role in helping borrowers and landlords navigate affordability, regulation and product choice, while supporting good outcomes across both the owner-occupied and buy-to-let sectors.\u201d<\/p>\n
House purchase lending is expected to be the main driver of growth, reaching \u00a3205bn in 2026 and \u00a3225bn in 2027.<\/p>\n
Meanwhile remortgaging is forecast to rise to \u00a3103bn and \u00a3110bn respectively as interest rates fall and affordability improves.<\/p>\n
Forecasters on average predict prices to rise by rise by 3.0% in 2026 and 3.1% in 2027, alongside an increase in transactions to 1.25 million and 1.32 million respectively.<\/p>\n","protected":false},"excerpt":{"rendered":"
A mortgage lender trade body is predicting steady increases in buy-to-let lending in the next two years, though the market is set to be professionalised thanks to the impact of regulation like the Renters\u2019 Rights Act. The Intermediary Mortgage Lenders Association predicted buy-to-let lending to rise from \u00a339bn in 2025 to \u00a344bn in 2026 and […]<\/p>\n","protected":false},"author":1,"featured_media":6543,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[2],"tags":[],"class_list":["post-6542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n