Strong Demand Creating Surge In BTL Mortgage Lending

Agile property investors are adapting to the current market by adjusting their strategies, with lending figures showing a staggering 25% increase in new buy-to-let loans, proving the underlying strength of demand in the buy-to-let market for smart investors to unlock.

With records showing £812.2m in new buy-to-let mortgages in the last 6 months, compared to £649.3m in the same period the previous year, it's clear to see the demand is sky-rocketing - and more investors are keen to get involved.

The latest figures from Paragon Bank show a huge increase of 25% this year in new buy-to-let loans, as demand continues to grow in what some investors see as a more difficult time in the property market to make moves.

Property investors are adapting to various factors, including the cost of living and higher house prices, benefiting from the mismatch between supply and demand. With competition between prospective tenants for a property continuously growing, which also contributes to the rental price growing, investors are seeing this opportunity and are keen to boost their portfolios to benefit from it.

Investor Trends Throughout 2025

One of the key factors to succeeding long-term in the property investment market is being able to respond and adapt to market changes as well as tenant trends, whether that means exploring new locations or types of property, or even focusing on a new type of tenant.

Some investors also look at enhancing their current portfolio, updating and reflecting the wants of the modern tenant, to stay above the curve and get the most interest from potential tenants when the time comes to replace the current tenant.

Recent studies show us that tenants are paying more and more for sustainable features, with energy-efficient properties being the highest in demand since utility bills increased so dramatically. As a result, investor interest in new-builds with eco-friendly features has also risen.

Diversifying Is The Key

Savvy property investors have always known that diversifying their portfolio is the best way to both spread potential risk, and also potentially maximise their returns, but more and more investors aree seeing the benefit of this and wanting to get involved.

FHL's Director of Sales, Grant Hendry.

If you're interested in diversifying your portfolio, and want to explore other investment opportunities, we're here to help. Specialising in BTR, PBSA, and Co-living investment, reach out today to learn more about what we can offer.