If you’re looking to invest in property with the view of renting it out, a buy-to-let mortgage is a great way of borrowing the necessary funds to do so. We looked at the latest reports to see how many Brits are investing in property using this lending method.
As of 2025, there are 4.7 million privately rented households in the UK – which is around 1 in every 5 households (19%). This has increased by 52% since 2009, when there were 3.1 million privately rented households in the UK.
In March 2026, the average buy-to-let mortgage rate on a 2-year fixed-rate mortgage (75% LTV) was 3.73% according to the Bank of England. This was down from a decade-high rate of 6.22% in July 2023, but up from 3.45% the previous month.
However, the recent conflict in the Middle East has caused mortgage rates to soar, with some estimates putting the average rate on the same mortgage type as high as 5.28% as of the end of March 2026.
The lowest average buy-to-let interest rate in the past decade was seen in October 2021 at just 1.65%.
| Month | Average buy-to-let mortgage rate |
|---|---|
| Feb 2026 | 3.45% |
| Jan 2026 | 3.41% |
| Dec 2025 | 3.51% |
| Nov 2025 | 3.51% |
| Oct 2025 | 3.72% |
| Sep 2025 | 3.70% |
| Aug 2025 | 3.64% |
| Jul 2025 | 3.80% |
| Jun 2025 | 3.85% |
| May 2025 | 3.99% |
| Apr 2025 | 4.11% |
| Mar 2025 | 4.29% |
| Feb 2025 | 4.33% |
The total value of buy-to-let lending in 2024 was £20.5 billion, up 12% from £18.3 billion in 2023 but down from a much higher £41.4 billion in 2022.
The value of buy-to-let lending dropped significantly between 2022 and 2023, going from £9.7 billion in the last quarter of 2022 to £5.8 billion in the first quarter of 2023. It reached a low point in the last quarter of 2023, at £3.7 billion, but has since rebounded and stood at £5.6 billion in the last quarter of 2024.
Buy-to-let mortgage lending made up 8.2% of total mortgage values in the last quarter of 2024, compared to 7% in the last quarter of 2023 and 11.9% in the last quarter of 2022.
| Month | Value of lending |
|---|---|
| Q1 2022 | £10.3 billion |
| Q2 2022 | £10.61 billion |
| Q3 2022 | £10.74 billion |
| Q4 2022 | £9.71 billion |
| Q1 2023 | £5.74 billion |
| Q2 2023 | £4.27 billion |
| Q3 2023 | £4.54 billion |
| Q4 2023 | £3.7 billion |
| Q1 2024 | £4.28 billion |
| Q2 2024 | £5.42 billion |
| Q3 2024 | £5.17 billion |
| Q4 2024 | £5.64 billion |
A typical deposit for a buy-to-let property is usually 25% of the property price, but this can vary between 20% and 40%. The minimum deposit will usually be higher than a standard residential mortgage deposit.
The average gross buy-to-let rental yield for the UK in Q3 2025 was 7.15%, compared with 6.93% in Q3 2024.
There were 13,000 buy-to-let mortgages in arrears of more than 2.5% in Q3 2024, up 19% from the same period in 2023. A total of 710 buy-to-let properties were repossessed in the third quarter of 2024, up 73% from the previous year.
Nationwide was the biggest UK buy-to-let provider in terms of gross lending in 2024, with a market share of 20%, up significantly from 10.6% in 2023. The building society had total lending of £6.78 billion in 2024, up from £3.13 billion in 2023.
Lloyds Banking Group comes in second place, with a 14.8% market share (£5.02 billion), followed by NatWest Group and OneSavings Bank (5.3% and £5.86 billion), and Coventry Building Society (4.7% and £1.59 billion).
| Lender | Buy-to-let lending | Market share |
|---|---|---|
| Nationwide BS | £6.78 billion | 20.00% |
| Lloyds Banking Group | £5.02 billion | 14.80% |
| NatWest Group | £1.79 billion | 5.30% |
| OneSavings Bank Plc | £1.79 billion | 5.30% |
| Coventry BS | £1.59 billion | 4.70% |
| Paragon Banking Group | £1.58 billion | 4.70% |
| Shawbrook Group | £1.51 billion | 4.40% |
| Yorkshire BS | £1.44 billion | 4.20% |
| Aldermore Bank | £1.35 billion | 4.00% |
| HSBC Bank | £920 million | 2.70% |
Sophie Barber
Communications Manager
If you’re wondering whether to use a mortgage broker or go directly to a bank, we explore the benefits of a broker.
Here’s everything you need to know about fees when exiting a mortgage.
Explore this guide on how to get the right home loan for you if you’re aged over 65.
Everything you need to know about joint mortgages and buying a property with your parents.
Find out about the online-only mortgage broker service, Mojo Mortgages.
They have been popular in other countries for some time, and now 15 year fixed rate mortgages are available in the UK.
Plenty of lenders will let you borrow 95% of a property’s value.
Our review reveals everything you need to know about Habito.
Find out more about the range of mortgages from Lloyds Bank, as well as what customers have to say about the lender.
Looking for a mortgage with TSB? Compare different rates and mortgage types, and find out how to get the right home loan for you.
