Buy to Let Market Update: Mortgage Availability, Investment Trends & Opportunities
For both prospective and existing landlords, staying informed about the latest developments in the buy to let sector is essential. From regional investment opportunities to emerging trends in buy to let mortgage finance, Articus Finance provides a strategic overview of the key factors influencing today’s market.
Is Buy to Let Property Still a Good Investment?
Over the past 18 months, economic turbulence has raised questions from many investors about the resilience of the UK property market. During the early stages of the pandemic, a significant slowdown in transaction activity combined with lenders withdrawing buy to let mortgage deals created widespread uncertainty. For some, the viability of buy to let investment was cast into doubt.
In reality, the market has demonstrated remarkable strength. Rental demand remained strong, and in many regions, the value of rental property has increased. One study found that the private rented sector across England, Wales, and Scotland rose by 5.8% year on year, achieving a total valuation of £1.4 trillion. This underlined the market’s ability to withstand broader economic challenges.
Factors such as the stamp duty holiday encouraged many landlords to expand their portfolios, whilst ultra-low interest rates have heightened the appeal of rental property as an asset class. This shift has reinforced the role of buy to let as both a source of income and an avenue for long-term capital appreciation.
Regional Trends: Where Are Investors Looking Next?
London has historically been regarded as the cornerstone of UK buy to let investment, given its strong price growth, liquidity, and consistent attractiveness to both domestic and international tenants. However, investor focus is increasingly broadening across the regions.
The North and North West of England are now thriving hotspots, offering some of the highest yields in the country. Rental markets in Manchester, Liverpool and Leeds continue to grow, supported by infrastructure investment, university populations, and the government’s levelling-up initiatives aimed at strengthening regional economies.
With sustained demand for rental accommodation and the long-term trend towards hybrid working, property in these regions offers dual benefits — attractive rental yield and promising future appreciation.
The Availability and Cost of Buy to Let Mortgage Finance
During the pandemic’s initial phases, many lenders withdrew from the market, dramatically reducing the availability of finance. Prospective borrowers found themselves unable to secure products, and remortgage opportunities were curtailed.
A year later, the situation has shifted significantly. Recent research indicated more than 2,700 fixed-rate and variable buy to let mortgage products were available as of mid-2021, compared to around 1,700 the previous summer. This recovery demonstrates increased competition and appetite amongst lenders.
The cost of borrowing has also become highly favourable. Average two-year fixed rates are lower than they were in 2019, providing an excellent window for investors to either purchase or refinance at historically competitive rates.
Our experience at Articus Finance mirrors these findings. We continue to secure bespoke lending outcomes via our network of private banks and specialist funders, even for clients with complex profiles. We advise investors to consider that the Bank of England has indicated interest rates may rise, reinforcing the advantage of locking into competitive mortgage rates sooner rather than later.
Learn more about our approach to structuring buy to let finance in our dedicated sections on Buy to Let Mortgages and Remortgage Services.
Preparing for 2022: Buying or Refinancing Buy to Let Property
The evidence is clear: UK buy to let property remains a stable and secure investment vehicle. Strong tenant demand, consistent price growth, and improving access to competitive finance terms all contribute to the market’s enduring appeal.
For landlords seeking to expand or refinance, current lending conditions make it a highly attractive time to act. Whether aiming to diversify geographically or re-gear existing debt at favourable rates, opportunities remain strong going into 2022.
If you would like personalised advice on structuring a buy to let mortgage around your wider financial goals, we invite you to Contact Us today. For further guidance, we also recommend exploring our comprehensive Buy to Let Guide, designed to support landlords and investors in navigating the UK market effectively.
Final Thoughts: The Outlook for the Buy to Let Mortgage Market
Despite short-term volatility during the pandemic, the UK buy to let market continues to deliver for investors. With increased mortgage product availability, historically low borrowing rates, and regional diversification offering enhanced yield opportunities, there remains strong confidence in property as a long-term investment strategy.
Articus Finance specialises in supporting landlords, expats, and high-net-worth individuals in sourcing tailored buy to let mortgage solutions. By leveraging our extensive network of banks and private lenders, we provide discreet, expert advice that ensures portfolios remain resilient and profitable.
For context on regulatory oversight within the UK mortgage market, we advise investors to review official guidelines via the Bank of England.
If you are considering your next investment or refinancing step, please Contact Us today. Our expertise ensures your investment decisions are aligned with both immediate objectives and long-term growth.
