Buy To Let mortgage applications drop because of Renters Rights Act
Summary
Commercial Trust reports that the share of buy-to-let mortgage applications for property purchases fell in Q2 2026, with landlords becoming more selective in response to the Renters Rights Act. While purchase activity declined, the average loan size increased and remortgaging made up a larger share of applications, suggesting landlords are adjusting finance rather than exiting the market.
Why it matters
Shifts in landlord purchasing and remortgaging can affect rental supply, investment demand and local market dynamics, all of which are relevant to residential surveyors. The regional movement in activity may also influence valuation assumptions and investor appetite in different parts of the country.
Key points
- Purchase applications fell to 24.2% of all applications in Q2 2026, down from 29.8% a year earlier.
- Average purchase loan size rose to £207,673, indicating larger borrowing despite fewer purchases.
- Remortgaging increased to 56.0% of applications in Q2 2026, up from 44.1% in Q2 2025.
- Landlord interest shifted towards northern regions, while shares in the East of England and some southern regions fell sharply.
- The article links the change in behaviour to the Renters Rights Act and wider rental reform pressures.
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