Buy-to-Let Market Holds Up Despite Renters' Rights Act

Mon 19 Oct 2026

There has been a lot of talk about landlords leaving the market. New rules, higher costs and tax changes have all put pressure on people who rent out homes. But some of the biggest names in buy-to-let lending say the picture is far from gloomy.

Speaking at the Brightstar Specialist Lending Expo in London on 7 October, senior figures from Fleet Mortgages, MT Finance, OSB Group and Brightstar agreed on one thing: the buy-to-let market is changing, not collapsing.

Here is a simple look at what they said and what it could mean for you as a landlord.

What the lenders said

The panel was clear that the Renters' Rights Act, which began coming into force in phases from 1 May 2026, has not wiped out the private rented sector. Steve Cox of Fleet Mortgages put it plainly: "You cannot destroy the private rental sector." Renting is a core part of how people live in the UK, and that is not going away.

Joshua Elash of MT Finance went further. He said buy-to-let had been one of his firm's best-performing areas this year, calling it a "bright spot" in 2026.

The numbers behind the confidence

Elash pointed to official lending figures from UK Finance for the first three months of 2026. They show more buy-to-let loans being made and landlords earning a better return on their rent.

Measure	Q1 2025	Q1 2026	What it means
Buy-to-let loans advanced	Around 56,400	58,272	Lending rose by 3.26% in a year
Average gross rental yield	6.93%	7.21%	Rent is earning landlords more compared with the value of the home
Landlord exodus	Widely predicted	Not happening	Lenders see change, not collapse

A gross rental yield is the yearly rent shown as a percentage of the property's value. For example, a home worth £250,000 that earns £18,000 a year in rent has a gross yield of 7.2%. It is "gross" because it does not take away costs such as repairs, insurance or mortgage interest.

Why tenant demand stays strong

One of the main reasons buy-to-let is holding up is simple: people still need somewhere to live. Cox explained that rental demand often works in the opposite way to the wider economy. When it gets harder to buy a home, more people keep renting, and they rent for longer.

High deposits, student debt and the cost of a mortgage are all making it tough for first-time buyers. That keeps them in rented homes, which supports demand for landlords, whatever new laws come in.

From side project to business

The panel did not say everything is easy. They described a "structural compression" of the market. In plain words, that means the market is squeezing in a little, with some types of landlords finding it harder than others.

Smaller landlords with just one or two homes, and those with little borrowing, are under the most pressure. Some are choosing to sell.
Professional landlords who treat their homes as a proper business are growing and buying more.
Younger investors are entering the market, often focusing on rental returns before buying a home for themselves.

Cox said the new rules have not caused the exodus many people feared. Instead, they have sped up a move towards landlords who plan carefully, keep good records and stay on top of the law. Lenders also said they are unlikely to raise how much they will lend against a property any time soon, so a healthy deposit and solid planning still matter.

What this means for landlords

The message from lenders is clear. Buy-to-let can still work well, but it rewards landlords who run things properly. Here are three things to focus on.

1. Plan your finances carefully

With borrowing limits staying tight, it pays to review your mortgage well before your current deal ends. Some landlords are also looking at buying through a limited company. Every situation is different, so speak to someone who knows buy-to-let lending inside out. Our in-house team at Mortgage & Co offers buy-to-let mortgage advice to help you compare your options.

2. Stay on the right side of the rules

Compliance simply means following the law. That includes safety checks, deposit protection, the right paperwork and fair rent increases. The government's guide to landlord responsibilities is a good place to check the basics. You can also read our plain English guide to what the Renters' Rights Act means for landlords.

3. Manage your property well

Good management keeps tenants happy, cuts empty periods and protects the value of your home. If you have a busy life or more than one property, handing the day-to-day work to an agent can save time and stress. You can see exactly what is included in our lettings and management packages before you decide.

The picture in South Essex

National headlines are useful, but local markets have their own story. In Benfleet, Hockley and the surrounding towns, good train links into London and popular schools keep plenty of tenants looking for homes. Well-presented, fairly priced properties continue to let quickly.

That means the same advice applies here as across the country: landlords who plan ahead, follow the rules and look after their homes are best placed to do well.

Frequently asked questions

Is buy-to-let still worth it in 2026?

For many landlords, yes. Lending is up, average yields have risen to 7.21%, and tenant demand remains strong. It works best for landlords who plan their finances carefully and treat letting as a business.

Are landlords leaving the market because of the Renters' Rights Act?

Some smaller landlords are selling, but lenders say there has been no mass exodus. Instead, more homes are moving into the hands of professional landlords who are growing their portfolios.

Should I buy a rental property through a limited company?

It can suit some landlords, especially those with several properties, but it is not right for everyone. The best step is to get advice on mortgages and tax before you buy.