As we begin 2026, two of our more respected trade bodies — UK Finance and IMLA — have already offered their forecasts for the BTL market next year, starting from a similar data point but reaching slightly different conclusions.
To begin with purchase activity, UK Finance takes a more conservative view, expecting BTL purchase lending to remain completely flat in 2026, at the exact same level as 2025, £11bn.
IMLA, by contrast, expects ongoing growth in the years ahead, with BTL purchase lending of £11bn in 2025, rising to £12bn in 2026, and up again to £14bn in 2027.
Both views deserve attention. But for advisers and their landlord clients, the difference between them matters, because it shapes where opportunity may well lie over the next year and beyond.
Why IMLA expects more activity, not less
IMLA’s forecast rests heavily on its assessment of the Renters’ Rights Act. The conclusion is not that existing landlords will flood out of the market, but that the sector will continue to change shape.
IMLA is clear that many smaller and accidental landlords may well consider their want or ability to keep active. Increased rules, higher costs and more risk, it says, will make BTL less appealing for those with just one or two properties. However, the homes themselves do not disappear.
Instead, IMLA expects churn. Properties sold by smaller landlords are likely to be bought by professional and portfolio landlords with clearer return targets and larger holdings. This helps explain why IMLA expects BTL purchase lending to increase in the next couple of years, despite what many might deem an environment which puts further pressure on landlords.
For advisers, this matters. It suggests fewer casual clients, but more activity among experienced landlords who still see BTL as a core part of their business.
The remortgaging opportunity advisers should capitalise upon
Where both forecasts align more closely is on remortgaging. While UK Finance does not give out BTL-specific remortgage and product transfer (PT) predictions, it certainly expects “steady growth next year in both types of refinancing”.
IMLA expects BTL remortgaging to reach around £30bn in 2026, rising again in 2027. This is a clearly a significant opportunity for advisers. Many landlords will be coming off deals taken in 2023 and 2024, when rates were higher.
The product market they face in 2026 is likely to be different. Pricing has already improved, fuelled by both base rate cuts and the drop in swaps, and competition between lenders is increasing.
For advisers, this creates a strong case for proactive client contact. Landlords may not be fully aware of how much pricing has shifted, or how wide the choice of products has become. Those conversations will be vital in helping clients manage cash flow and plan next steps.
Product transfers are not a given
One point that often gets overlooked in BTL is around PTs. Unlike the residential market, not all BTL lenders offer them. That means many landlords reaching the end of a rate will have no choice but to remortgage, even if they would prefer to stay with their existing lender. For advisers, this adds a little extra complexity but also, highly importantly, it offers opportunity.
Plus, if your client is with a lender that offers PTs, such as Landbay, then you have the best of both worlds. The ability to keep the client with their existing lender if that is the right option, or to remortgage them to a competitor where both rate and criteria might be more suitable.
We introduced PTs to give advisers and landlords exactly this type of flexibility. In a market where remortgaging and PT volumes are expected to stay high, this matters. It allows advisers to act in their client’s best interest, whether that means switching lender or staying put, potentially on a better rate.
Competition is increasing, especially in core BTL
Another reason the IMLA view feels particularly well-grounded is the level of competition we expect to see in 2026. This is likely to be a far more price-driven market than the one landlords faced two or three years ago.
Lenders are already competing harder in what most would see as mainstream BTL. At Landbay, this is reflected in our Premier range offering, which is aimed at standard properties and landlords, who have up to 15 properties, and who are seeking strong pricing and clear criteria. For advisers, this means more choice and sharper rates for clients who fit that space.
What this means for adviser relationships
Taken together, the data points to a market that is not standing still. It is becoming more concentrated, more professional and more competitive.
Advisers who understand this shift will be well placed. The landlord clients most likely to remain active are those with growing portfolios and clear plans. They will value advisers who can help them refinance efficiently, assess purchase opportunities created by any Rental Rights Act shifts, and make sense of a changing rule book.
Whether the UK Finance or IMLA forecast proves closer to the truth, one thing feels clear. 2026 will not be a quiet year for BTL mortgage advisers.
For those willing to engage early and lean into the opportunity, it could be a very productive one.
