Landlords are taking out more mortgages to buy properties despite the battering they have received from recent legislative and tax changes, latest figures show.

UK Finance, the trade organisations for mortgage lenders, has revealed that the number of loans advanced to landlords during the first three months of this year increased by 3.26% to just over 58,000 compared to the same period last year.

It represents a total loans value of £10.8billion, a 7% rise year-on-year.

There is also further good news from the market, UK Finance’s market update highlights, revealing that the average gross buy-to-let rental yield for Britain during the first three months of 2026 was 7.21%, compared with 6.93% during the same quarter a year ago.

“Although the implementation of the Renters’ Rights Act was imminent during the period this data covers, it doesn’t seem to have deterred landlords,” says Mark Harris, chief executive of mortgage broker SPF Private Clients.

“An increase in new buy-to-let loans advanced in the first quarter of the year, up compared with the same period the previous year, points to investors who still recognise opportunities in the market.

“Perhaps the uptick in average yields explains that – investing in rental property is still working for many landlords and experienced ones in particular are expanding their portfolios where opportunities arise.”

Many landlords are expanding their portfolios where opportunities arise.”

Restructuring

Raheel Butt, Head of Buy-to-let Underwriting at specialist lender MT Finance, adds: “What we are seeing is a strategic restructuring of the market.

“The 11.1% surge in remortgaging activity highlights a proactive landlord community. Savvy investors are taking control and optimising their existing portfolios. While high borrowing costs and preparation for the Renters’ Rights Act naturally caused a temporary dip in new house purchases, the fundamental demand for quality rental housing across the UK is stronger than ever.

“Crucially, the 6% quarter-on-quarter drop in mortgages in arrears, bringing the total down to just 0.47% of the market, is a fantastic indicator of stability. It shows that professional landlords are managing their leverage exceptionally well. It also underscores the value of robust, common-sense underwriting.”