The number of buy-to-let (BTL) mortgages taken out by landlords has increased by 6.5% and 8.9% by value, figures which are ahead of all expectations says Steve Cox, Chief Commercial Officer at Fleet Mortgages.

Cox tells Mortgage Solutions magazine that landlords are incredibly savvy and, despite the various headwinds, they recognise that the investment fundamentals remain positive.

Strong yields

He highlights the latest figures from the Office for National Statistics, which show that average year-on year UK private rents increased by 9% during 2024, which has barely moved from the 9.1% the previous month.

This, he says, when combined with ongoing tenant demand, means rental yield figures remain strong.

And, he adds, despite the first-time buyer rush to beat the stamp duty rise, affordability remains a major obstacle for them, as does saving for a deposit, and so the PRS is still the only option for many.

We’re seeing no slowdown in the number of existing borrowers who want to keep on purchasing.”

Cox says: “Fleet Mortgages is seeing no slowdown in the number of existing borrowers who want to keep on purchasing, plus we’ve also seen a slight rise in first-time landlords, perhaps revealing that property remains a go-to asset class for many.

“What is, however, also certain is that BTL has become more professional and there is far greater degree of complexity with landlords’ wants and needs.”

He concludes: “Keeping close to existing landlord clients is a must, particularly those with larger portfolios, as they are more likely to need advice, and need it regularly.”