Specialist lenders say the BTL sector is professionalising, not retreating, despite Renters’ Rights Act pressures
The private rented sector is evolving rather than collapsing. That was the consensus from senior lending figures who gathered at the Brightstar Specialist Lending Expo 2026 at the London Stadium on 7 October.
The event brought together representatives from Fleet Mortgages, MT Finance Group, OSB Group, and Brightstar Group itself. Across the panel, the mood was measured — wary of the regulatory weight bearing down on landlords, but unconvinced that it signals a terminal shift.
How is the Renters’ Rights Act reshaping buy-to-let in 2026?
Fleet Mortgages chief commercial officer Steve Cox told delegates the Renters’ Rights Act had introduced another layer of difficulty for landlords. The Act came into force in phases from 1 May 2026. But Cox rejected the idea that it could upend the sector. “You cannot destroy the private rental sector,” he said. “You cannot do it. It’s a fundamental part of our housing fabric.”
Cox argued that rental demand is structurally counter-cyclical. When economic conditions tighten and homeownership becomes harder to reach, tenants stay in the rental market longer. That dynamic provides a floor under demand regardless of legislative headwinds.
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Lenders report stronger-than-expected performance
MT Finance Group chief executive Joshua Elash said the picture from inside the business had surprised even those who had expected resilience. “Buy-to-let has actually been one of the best performers for us as an institution this year,” he said.
Elash challenged the idea that the Act had changed day-to-day reality for landlords. He described buy-to-let as “one of the bright spots in 2026.”
Those remarks align with the latest market data. According to UK Finance’s Q1 2026 figures, buy-to-let loans advanced rose 3.26% year-on-year to 58,272. The average gross rental yield climbed to 7.21% from 6.93% in the same quarter of 2025.
A younger generation could reshape landlord demographics
OSB Group head of intermediary sales and distribution Emily Hollands took a longer view. She said regulatory disruption would eventually normalise, pointing to previous cycles of upheaval within the sector. “I think the buy-to-let market will continue,” she said. “I think it will change over the next three to five years.”
Hollands argued that a generational attitude shift may be under way. Younger investors are prioritising rental returns over getting onto the housing ladder themselves.
The entry barrier, however, remains real. The panel acknowledged that high student debt and the cost of funding a first home make deposits hard to raise.
Brightstar Group chief executive Rob Jupp suggested parental support — the so-called Bank of Mum and Dad — could help bridge that gap. Cox added that inheritance, including properties and limited company structures passing between generations, might create another entry route.
What does buy-to-let professionalisation mean for mortgage brokers?
The panel’s overall tone reflected a sector undergoing structural compression rather than collapse. Smaller, lightly geared landlords are feeling squeezed, while professional operators are consolidating — a shift that industry analysis of the 2026 buy-to-let market has tracked across lender and broker commentary this year.
Cox noted that lenders are unlikely to stretch their risk appetite through substantially higher loan-to-value ratios in the current environment. That limits the upside for newer entrants who cannot access lower-leverage structures. For mortgage professionals working with portfolio landlords, the emphasis will remain on limited company structures, remortgage pipelines, and careful affordability conversations.
Cox argued the Renters’ Rights Act has not triggered the landlord exodus some predicted. What it has done is accelerate a structural shift. Buy-to-let is becoming a market for professional investors who treat property as a business, not a passive income stream. For brokers, understanding that shift is now the baseline for serving the landlord clients who remain.
