Is buy-to-let dying?

Some market analysts predict BTL's demise, but one lending executive disagrees

Is buy-to-let dying?

Predictions that the buy-to-let market is dying are well wide off the mark, according to one lender executive, who instead believes the sector is just evolving to meet the changing needs of landlords, tenants, and the broader UK housing market.

“The buy-to-let market is evolving, not dying,” said Andrew Ferguson (pictured), managing director and head of buy-to-let at specialist lender West One Loans. 

Despite concerns over regulatory changes and economic pressures, Ferguson believes that the sector is more resilient than many suggest. He points to what he sees as overly cautious lending predictions from last year and highlights more optimistic forecasts from the Intermediary Mortgage Lenders Association (IMLA). The industry body recently projected a 14% increase in BTL lending to £38 billion in 2025, followed by an 11% rise to £42 billion in 2026.

Ferguson acknowledges that recent regulatory developments, such as the proposed Renters Reform Bill, have created uncertainty. However, he maintains that the private rental sector remains fundamental to the housing market.

“I understand the recent market conditions have caused many market watchers to be downbeat on BTL, particularly with the Renters Rights Bill, which places further restrictions on landlords, coming down the line,” Ferguson said. “But those predicting the demise of the sector are overly pessimistic.”

He also noted that landlords have navigated past challenges, including tax relief reductions and increased regulation, yet the private rented sector continues to house nearly one in five UK households.

Looking ahead, Ferguson emphasised the importance of considering multiple market forecasts rather than focusing solely on negative outlooks. He believes that if current economic pressures ease, the sector could perform better than some expect.

“Although challenges remain and uncertainty persists, the BTL market was resilient in 2024,” he said. “If some of those headwinds change direction, I am certain we may see greater growth than many are predicting.”

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