MRF-0634-Landlord Times March 2026

LANDLORD TIMES

March 2026

BUY-TO-LET LENDING STILL GROWING

Buy-to-let (BTL) mortgage lending increased by 26% in Q3 of 2025 compared to the same period in 2024.

An analysis of Bank of England (BoE) data by specialist mortgage company Alexander Hall showed

landlords borrowed £6.6 billion during Q3 of last year (the latest available). It represents a 22% increase on the previous quarter and marks an average quarterly increase of 7% over the past year. This matches the pace of growth

seen across both first-time buyer and home mover sectors. Improving mortgage market conditions are cited as one reason for the increasing borrowing demand for rental properties. The analysis shows whilst buy-

to-let mortgages remain the smallest segment of the mortgage market, accounting for 8.2% of total lending, this represented a 22% increase on the previous quarter and a 26% increase when compared to Q3, 2024.

The findings suggest that, despite the incoming Renters’ Rights Act and headlines around landlords leaving the sector, borrowing demand remains resilient.

"borrowing

demand remains resilient"

UK Finance figures (Q3 2025) also

show the value of new buy-to-let lending has risen by 28% year-onyear, while the number of new buyto-let loans issued has increased by 23%.

Only remortgaging activity recorded stronger growth, with an average quarterly increase of 12%, reflecting heightened refinancing activity as borrowers respond to improving rates and affordability. Senior lettings agent at SBK Lettings, Josh Jones said: “These figures are great news for the private rental sector. They show investor appetites are very much alive and kicking.

“Lower mortgage rates alongside more product availability are helping landlords but they also reinforce the fact, buy-to-let is a solid long-term investment.

“I hope our landlords take heart from this. The sector is changing and the Renters’ Rights Act will have consequences, but our landlords are resilient and with the right guidance, help and support, they can weather the storm.

“Please do feel free to pop into branch or call the teams if you have any questions as we’d be happy to help.”

Local Rental Market Focus – Evesham

The rental market in Evesham continues to see very strong demand. The number of tenants actively looking for homes is increasing year-on-year, creating sustained pressure on available rental stock.

The biggest on-going challenge locally is maintaining enough supply to meet this growing demand. With fewer properties available relative to the number of tenants searching, rental values have continued to rise across the area.

Local Housing Allowance (LHA) rates have also increased, reflecting the wider rise in rental costs. For two-bedroom properties, the allowance has increased from £143.84 per week in 2024 to £161.10 per week in 2025, representing an increase of approximately 12%.

Rents continue to rise across the area, as shown in the latest statistics. Now we are past the festive period, it is clear activity levels for 2026 are already strong, with landlords continuing to bring properties to the rental market to

help support much-needed supply. Looking ahead, the Renters’ Rights Act legislation is due to come into force in May 2026. Both landlords and tenants should ensure they understand the upcoming changes and seek professional advice where needed to make sure they are fully prepared.

Josh Jones MARLA Senior Lettings Manager

JLP abandons PRS

The John Lewis Partnership is pulling out of the private rental sector (PRS).

The employee-owned retailer cited “a fundamental shift in the economic conditions” which had underpinned its Build to Rent (BTR) venture when it launched in 2020.

It said the move was part of a broader strategic decision to refocus on its core retail brands, John Lewis and Waitrose, where it said significant investment programmes are underway.

However, its announcement is a blow for the PRS as the investment by the company was substantial and it had been seen as a confidence boost for the sector.

As we reported in 2022, JLP announced in July that year, a £500m multi-decade joint venture with global investment company

Abrdn. Its plan was to build around 1,000 new Build To Rent homes across three locations – Reading, West Ealing and Bromley.

In a statement JLP said: “Our rental property ambition was based on a very different financial environment: one with more stable investment returns, lower borrowing costs and more affordable costs to build homes.

“Unfortunately, the current climate - higher interest rates, inflationary pressures and a more cautious property market - has meant the model no longer meets the Partnership's investment criteria.

“We remain committed landowners in our communities and continue to invest significantly in our property assets and retail offer.”

It added it would fulfil existing management contracts at its BTR sites including Leicester and Birmingham “as part of a responsible transition out of the business”.

Lettings manager at SBK Lettings, Sophie Biddle said: “It is really disappointing to hear JLP is set to leave the PRS.

“The investment was considerable and at the time it was seen as a positive move which provided confidence not just in the sector itself, but to buy-to-let landlords, some of whom were hesitant about staying in the PRS.

“I hope it does not deter those landlords from continuing to invest in a sector which we still believe has huge potential and can deliver great returns.

“As ever, if any of our landlords would like advice on any aspect of their investments, please do give one of our teams a call or pop into branch as we’d be happy to help.”

Number of buy-to-let companies continues to grow

The number of buy-to-let companies registered in the UK rose 66,587 to 443,272 by the end of 2025.

It represents an 8% increase from 2024 and a 363% rise over the past decade.

The figures also show more than three-quarters of all new buy-to-let purchases are now made through limited companies.

According to the latest market analysis from Hamptons this growth has taken place even as investors have made up a slightly smaller share of home purchases, where across the country investors bought 10.8% of homes in 2025, down from 11.9% the year before.

New buy-to-let firms were the second-most common type of new company founded in 2025, trailing only businesses offering mail order services.

By the end of the year, 443,272 buy-to-let companies were active at Companies House, nearly five times the 2016 figure of 91,278.

Growth has continued into 2026, with new incorporations running 11% higher than the same month

last year, suggesting the trend is still accelerating.

The upward trend in incorporations has been building since 2016, when full mortgage interest relief began to be phased out for higher rate taxpayers owning buy to let property in their personal names. Since then, company ownership has steadily become the default route for many landlords.

The number of new companies established peaked at 6,493 in September 2025, the highest monthly figure on record. Across England and Wales, company landlords now own more than 755,000 property titles, compared with 273,000 a decade ago.

This momentum has carried into 2026, with 5,922 new buy-tolet limited companies set up in January 2026. This is 11% more than the same month last year, suggesting the trend shows little sign of slowing. Hamptons estimates roughly 1.5 million rental homes are held in company structures.

In January there were signs the recent falls in rental growth may be

starting to moderate. The average UK rent on a newly let home was £1,366 pcm, 0.2% lower than the year before. It is a smaller annual decline than in December, when rents fell 0.8%.

Despite this, tenants renewing their contracts continued to face increases, with the average renewed rent rising 2.8% over the same period to £1,305 pcm.

SBK Lettings regional lettings manager Jo Egan said: “We are seeing more landlords adapting to changes rather than exiting the market altogether and one of these ways is to opt for limited company status.

“This is a trend we do not expect to see reverse especially given the tax changes which have come into force since 2016, including the removal of tax relief available on mortgage interest payments.

“However, while it may be a growing trend, we recognise it may not be right for all landlords so if you would like advice or more information we always recommend taking independent financial advice.”

Date set for next landlord forum

The Renters’ Rights Act will be among the topics covered at a biannual industry event in May.

The Landlord Forum will take place at the SYDNI Centre in Leamington Spa on Wednesday, May 13, between 12.30 and 4pm.

Hosted by Warwick District Council it is being run in partnership with the local Landlord Steering Group and National Residential Landlords Association.

Alongside the presentations, the free event will be a chance for landlords to engage with other investors, agents and industry representatives, generate leads,

speak to and ask questions of the speakers and exhibitors.

SBK Lettings managing director, Rebecca Dean said: “We have supported this forum for many years now and it’s always wellattended and informative.

“However this one will be particularly beneficial as the Renters’ Rights Act will have gone live on May 1 and it will be an opportune time for landlords to come along and find out how agents such as ourselves can help guide and support them through the changes.

“It’s a great way for them to ask

any questions they may have, particularly surrounding the new legislation.

“For those landlords and investors who are let only, we believe it will be particularly useful and we hope to see as many as possible at the event.”

The free forum takes place between 12.30pm and 4pm at SYDNI Centre, Cottage Square, Sydenham, CV31 1PT.

Free parking is available onsite.

Email Warwick district council landlord liaison officer Balwant Rai, balwant.rai@warwickdc.gov.uk or call 01926 456733 to register.

Government tweaks to Renters' Right Act

The government has issued revised guidance on giving notice to private tenants before May 1.

This is the date when the first phase of the Renters’ Rights Act (RRA) comes into effect.

The latest revisions to the guidance all concern notices.

The government says landlords must ensure they issue possession notices correctly before May 1. If notice is served on or after that

date, the new possession process takes effect.

There is also a new ground for possession for landlords who rent to students. It means landlords can ensure properties are available to let to new students from one academic year to the next.

For student tenancies signed before May 1, 2026, landlords have until May 31, 2026 to give tenants the written notice that they may

seek possession under Ground 4A.

Once that prior notice has been served, a Section 8 notice relying on Ground 4A may then be served between May 1, 2026 and July 31, 2026, giving two months’ notice instead of four.

You can listen to more about these changes in our latest podcast by clicking the link here.

 Renters' Right Act Podcast

£188,000 STARTING PRICE GROSS SHORT TERM LET YIELDS UP TO 13%

Heritage Meets Modern Living

A stunning riverside development in the heart of Market Harborough’s Welland Quarter.

• Allocated parking space

• Ground floor apartment

• Modern and well presented

• Convenient location and close to town

• Potential rent value of £825 pcm

• EPC - C

Court, Market Harborough

• Luxury 1 and 2 bedroom riverside apartments

• Walking distance of the train station

• Ideal short term lets with high demand

• Close to the town centre and all amenities

*All rental values and subsequent yields are only estimates unless tenanted, and subject to market fluctuations. To follow Sheldon

Gross yield of 8.6% £115,000

Gross short term let yields up to 13% £118,000

London Road, Coventry

• A company sale offering excellent returns on investment

• 15 double and 1 single self contained high quality studios within walking distance of Coventry city centre

• Modern self contained living spaces

• Fully Occupied with existing tenancies in place at good market rents

• EPC - C

Manor Drive, Loughborough

• Three-bedroom terraced property

• Ideal investment or development opportunity

• Spacious plot size

Price on Application

• Prime renovation/development opportunity

• Yields based upon auction guide price

Gross yield of 9% £125,000

For aution properties click logo

• Spacious semi-detached property

• Three well-proportioned bedrooms

• Ideal rental investment

• Desirable location of Barkby, Leicester

• Yields based upon auction guide price

For aution properties click logo

• End-terraced family home

• Ground floor WC and upstairs bathroom

• Prime Earlsdon location

• Finham Park and Earlsdon Primary catchment

*All rental values and subsequent yields are only estimates unless tenanted, and subject to market fluctuations. To follow Sheldon

£150,000

• Current rent value of £1,200 pcm

• EPC - E

£175,000

• Open plan kitchen and living room

• Two double bedrooms with fitted wardrobes

• Walking distance to mainline train station to London

• Current rent value of £1,025 pcm

• Second floor apartment which can be access via lift or stairs

• Open plan kitchen and living room

• Two double bedrooms with fitted wardrobes

• Covered parking

• Walking distance to mainline train station to London

• Current rent value of £975 pcm

• EPC - D

£230,000

Sheldon Bosley Knight is delighted to offer an off-market, exclusive opportunity of either individual plots or multiple unit discounted packages from developer David Wilson Homes. With various property styles there is plenty to suit your investment needs.

> Luxury three- and four-bedroom homes at Heritage Grange located just a short drive from Leamington Spa and Warwick.

> Built within 14.3 acres of green space, enjoy scenic walks and a family-friendly play area.

> Energy efficient homes with solar panels and EV car charging points.

> 20 minute drive to Leamington Spa and Warwick town centres with a regular bus service available.

> Close to the M40 motorway with easy links to Birmingham and Oxford.

> Discover countryside living with city convenience.

*Discounts and exclusive multiple unit packages are only available

For more information please contact Jack Richardson and the New Homes Team on 01789 333 466

the village of Stretton on Fosse, approximately 2.5 miles southwest of Shipston on Stour, and 3.5 miles north of Moreton in Marsh.

Access The land is accessed directly from Tankards Hill, Stretton on Fosse.

Buildings

A water connection is present to a trough on the land. The Agent has not tested the services and Buyers must rely on their own due diligence.

across

Designations

Soil

• 5.23 acres of Grade 3 pastureland

• Open-fronted brick shelter with separate brick stable

• Self-enclosed hardstanding area for parking and Shipston on Stour

• A water connection is present via a trough

• Perfect as a pony paddock or alternative uses (STPP)

• Redundant agricultural buildings extending to approximately 1,800 square feet

• 8.26 acres of Grade 3 pastureland with excellent road frontage

£120,000

• Excellent connections to surrounding towns such as Moreton in Marsh and Shipston on Stour

• Suitable for amenity or other alternative uses STPP

£200,000

Development land south of Banbury Road, Ettington

• Residential development opportunity

• Outline planning permission for up to 21 dwellings

• Eight open market dwellings and 13 self-build and custom-build

• For sale by Private Treaty offers to be submitted to Charles Davis 07915 397008 or Daniel Jackson 07809 563691

£2,500,000 Gross

• Prominent high street location

• Investment opportunity

• Gross internal area: 434m (46,802 sq ft)

• Passing rental value: £47,000 per annum

• Leased to a national covenant

• Development potenial (STP)

• Stratford town centre

• Freehold • EPC - D

Court Lane, Evesham

• Modern, two-storey office extending to approx. 1,575 sq ft

• Let to Raycom Ltd on a five-year FRI lease from June 2022, providing secure income

• Current rental £14,500 per annum

• Bright office space with suspended ceilings, LED lighting, partitioned meeting rooms, kitchen and WC

• Situated in Abbey Lane Court, an established business park with on-site parking and easy access to A46 and Evesham town centre 9 Abbey

• Part exchange considered 9 Abbey

• Planning permission granted to split flat into two, one-bedroom flats

• Highly desirable location

• Residential accommodation to be vacant upon sale

• Current rental £20,000 per annum

Gross yield of 2.4% £825,000

LOCAL BRANCHES ACROSS THE MIDLANDS