BTL lending is expected to grow by 14% to £38bn according to the latest report from the Intermediary Mortgage Lenders Association (IMLA).
The report also predicted a further increase in 2026, with BTL lending reaching £42bn, an 11% rise.
This IMLA said the growth will be supported by improved affordability for landlords as rates fall while rents carry on increasing, due to the structural supply/demand imbalance in the private rented sector.
According the IMLA, the announced rise in the stamp duty charge for additional properties will slightly reduce the flow of new landlord purchases, while fears around the renters’ reform bill may prompt some to sell up, deepening the imbalance and further increasing rents.
Commenting on the report, Kate Davies, executive director of IMLA, said “BTL landlords continue to face the challenge of increased regulation and higher taxes. and will be looking to run their property businesses as efficiently as possible. Many will rely on professional guidance in this endeavour.”
