Buy-to-Let Market Shows Steady Recovery |By Liz Syms, Chair of the Society of Mortgage Professionals and CEO of Connect for Intermediaries

As the UK buy-to-let (BTL) sector gradually transitions from contraction to cautious recovery, advisers working with landlord clients have reason to be alert to renewed opportunity. Over recent months, we have seen small but meaningful improvements in BTL mortgage pricing, underwriting criteria and lender processing, all of which can help convert previously stalled enquiries into viable cases.

Lenders are loosening criteria and improving processes

Several lenders have trimmed BTL product pricing, widened their acceptance criteria and invested in faster underwriting and application processes. For example:

• Some lenders have lowered fixed-rate BTL mortgage pricing and introduced more flexible fee structures, allowing advisers to balance upfront costs against long-term affordability.

• Others have expanded their specialist BTL offering, including for scenarios such as limited-company ownership, holiday lets or multi-unit blocks.
  These changes may not make headlines in isolation, but together they can make a real difference to completion rates for landlord clients.

“There are signs of renewed confidence from landlords”

Landlord strategies are evolving.

In this shifting landscape, we are seeing changing preferences among landlords which advisers should be ready to support:

• The dominance of five-year fixed-rate BTL deals is easing. While the five-year fix remains popular, more landlords are exploring shorter-term fixes (e.g., two-year) or even trackers to retain flexibility in a market that may yet evolve further.

• Property investors are increasingly focused on strategy: holding period, planned works, capital growth potential, and tax position matter more than ever. Advisers who model options (certainty vs flexibility) and align them with the landlord’s broader business plan will add real value.

• Professional and portfolio landlords are becoming more prominent. The “accidental landlord” segment is shrinking, and lenders are more comfortable supporting experienced investors with structured portfolios, especially if their strategy is clear and well communicated.

“For advisers who stay on top of the changes, these improvements may make a difference in completion numbers”

Opportunities for advisers

For brokers operating in the BTL space, the current environment offers several actionable opportunities:

• Convert stalled cases: Clients who shelved plans in 2023 or early 2024 may now be able to re-approach the market with a better chance of success. A refreshed review of affordability, costs and strategy may unlock opportunities.

• Structure for flexibility: Present two well-modelled pathways to landlord clients

  • Certainty path: A longer-term fix aimed at stabilising interest costs and cash flow.

  • Flexibility path: A shorter fix or tracker with a clear refinancing plan built in.

• Leverage specialisms: Properties such as HMOs, multi-unit blocks, or holiday lets continue to offer lender opportunities. Advisers with expertise in these niches can open doors where more generic propositions may struggle.

• Highlight improved processing: Make sure clients understand that some lenders now offer more streamlined portals, improved underwriting transparency and faster decision-making. Speed can now be a differentiator in time-sensitive BTL deals.

Why it matters now

Against a background of regulatory change, tax evolution and higher interest rates, the BTL market had become more challenging. But the signs of improvement matter: they signal that the sector is stabilising, not booming, but moving from pause to cautious growth. For adviser-led clients, this is precisely the moment to act. By staying ahead of product change, aligning strategy, and guiding landlord clients with insight, intermediaries can position themselves strongly for the coming phase of BTL activity.

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