Why Landlords Are Investing in Buy-to-Let in Basingstoke

A growing number of landlords are securing buy-to-let (BTL) mortgages, showing that the rental market remains strong.

Steve Cox, Chief Commercial Officer at Fleet Mortgages, has analyzed the latest data and shared his insights on the sector’s outlook—and it’s looking positive.

Buy-to-Let Market Resilience

In Mortgage Solutions magazine, Cox highlighted how BTL outperformed expectations last year and has started 2025 on a strong note.

“I think we sometimes underestimate the resilience of our market,” he said.

Recent figures back this up:

• A 6.5% rise in the number of BTL loans in Q3 2024
• An 8.9% increase in total loan value
• £33.2 billion in overall BTL lending for 2024—far surpassing the £27 billion forecast

“We’re seeing no slowdown in existing landlords expanding their portfolios,” Cox noted. “Plus, there’s been a slight increase in first-time landlords, suggesting property remains a go-to investment.”

Why Are Landlords Investing?

Cox identified several key factors driving investment in BTL properties:

1. Strong Rental Yields

Rental prices continue to rise. In the year ending December 2024, private rents across the UK increased by 9%.

2. High Tenant Demand

Although the government aims to boost housebuilding, it will take years to address the housing shortage. Cox noted:

“Some market fundamentals are simply unshakeable, including supply-side shortages.”

3. Affordability Challenges for Buyers

Despite falling interest rates, first-time buyers are still struggling to save for deposits due to the cost-of-living crisis. This means more people are renting for longer, keeping demand high.

4. A More Professional Sector

Regulatory changes have made the BTL market more structured and professional. Mortgage products have also become more diverse, making expert advice even more essential.

What’s Next for Landlords?

For those looking to remortgage or invest in BTL for the first time, Cox strongly advises working with a skilled mortgage adviser.

If you’re considering expanding your rental portfolio or exploring buy-to-let opportunities, contact us today to discuss the local lettings market.

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Sources:

UK Finance | Intermediary Mortgage Lenders Association | Office for National Statistics