An increased number of buy-to-let loans are being taken out – counteracting the trend of landlords leaving the sector, analysis from mortgage advisor Alexander Hall has revealed.
There were some 52,648 buy-to-let loans issued during the final three months of 2024, marking a 7.7% increase on the previous quarter and the highest total seen since the start of 2023.
Whilst this increase in new loan activity was largely driven by existing investors looking to remortgage, accounting for 62.4% of all new loans issued, 34.7% came via new rental property purchases, up from 33% the previous year.
In 2025 Alexander Hall predicted the number of buy-to-let loans issued remaining above 50,000.
During Q4 2024, the average rate sat at 4.28%, down from 4.40% the previous quarter and from 5.59% versus the year before (Q4 2023).
Stephanie Daley, director of partnerships at mortgage advisor, Alexander Hall, said: “The number of buy-to-let loans issued and the value of these loans has increased substantially over the course of last year, with continued growth forecast for 2025.
“This increase in buy-to-let investor activity is being largely driven by those looking to remortgage, but we’ve also seen an increase in new investment and it’s clear that the improvements to buy-to-let mortgage rates are helping to drive confidence across the sector.”
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