The Intermediary – March 2026 - Flipbook - Page 42
BUY-TO-LET
Opinion
A purposeful
start to 2026
I
t would be easy to assume the
buy-to-let (BTL) sector has
begun 2026 on the back foot,
particularly given the steady
flow of mainstream media
commentary questioning
landlord appetite and wider market
confidence. However, the evidence we
are seeing on the ground presents a far
more measured and, in many respects,
encouraging picture.
For example, a simple January 2025
to January 2026 comparison reveals
that our application volumes were up
13%, which is not a marginal shi, and
suggests that advisers are still placing
significant levels of business for
landlord clients.
That upli came despite continued
debate about regulation, tax and rental
reform, which tells its own story
about the resilience of the professional
landlord base and the ongoing need for
well-structured finance.
There has also been a clear change
in product preference. 2-year fixed
rates have seen a notable increase
in take-up, reflecting a view among
many landlords that rates have
stabilised and may edge down over the
medium term.
Rather than locking in for longer
periods, some borrowers are opting
for flexibility, positioning themselves
to refinance again should pricing
improve further.
As many expected, 2026 is going to
be a year led by remortgage activity,
and the early data supports that view.
Purchase transactions have dipped
slightly, from 39% of our applications
in January last year to 37% this year,
but that remains a healthy proportion
in the current climate. The marginal
reduction does not point to retreat; it
points to prioritisation.
For many portfolio landlords,
remortgaging is not simply about
securing a new rate at the end of a
fixed term. It is about restructuring
portfolios, improving cashflow, and in
a number of cases, releasing equity to
40
The Intermediary | March 2026
fund future acquisitions. Advisers are
working through those conversations
with clients, looking at overall
portfolio loan-to-values (LTVs), rental
cover and property performance
before making recommendations.
This is particularly relevant given
that limited company borrowing
continues to represent around 80% of
our applications. That proportion has
been consistent, and underlines how
embedded the incorporation model
now is for professional landlords.
The clients coming through
advisers’ pipelines are not casual
entrants; they are professionals
making long-term decisions about
how and where to allocate capital.
Shaping demand
Another notable trend at the start
of this year has been the increase
in house in multiple occupation
(HMO) business.
Advisers placed more cases with
us in this segment compared with
January 2025, reflecting landlords’
ongoing focus on yield and rental
resilience. In a market where
operating costs remain under
scrutiny, higher-yielding assets
continue to appeal, particularly to
experienced landlord borrowers who
understand the extra management
demands involved.
In terms of product design, fixedfee and zero-fee products have been
the most popular across our ranges so
far in 2026. Landlords and advisers
are clearly modelling total cost over
the fixed period, rather than focusing
solely on headline rate.
Products which cover higher
energy-performing properties,
specifically those with Energy
Performance Certificate (EPC) ratings
of Band A to C, have also seen strong
demand and sit just behind fee-led
options in terms of popularity.
Again, this is significant, because it
demonstrates that energy efficiency
is not simply a policy discussion. In
WES REGIS
is national account manager
at Fleet Mortgages
light of renewed responsibilities
by 2030, it is already influencing
borrowing choices today.
Where landlords have invested in
improving properties, they are keen
to benefit from the pricing advantages
available, and advisers are ensuring
those options are front and centre.
Continued confidence
When stepping back from the data,
the overall feel of the sector at the start
of 2026 is one of cautious optimism.
Advisers appear busy. Cases are being
placed. Conversations are detailed
and portfolio-wide. There is lile
sense of panic and even less sense
of withdrawal.
Negative narratives oen
focus on isolated data points or
policy announcements without
acknowledging how adaptable
the professional landlord base has
become. The clients driving current
volumes are experienced, wellcapitalised and focused on longterm returns. They understand that
markets move in cycles and that
periods of rate stability or modest
decline can present opportunities as
much as challenges.
If rates hold where they are, or
dri downwards, we would expect
purchase activity to strengthen.
It would therefore be wrong to
characterise the opening months
of 2026 as subdued for buy-to-let.
The sector is active, disciplined and
strategically focused.
For lenders, advisers and landlords
alike, that makes for a far more
constructive starting point to the
year than some of the more general
commentary might suggest. ●
