Insight Buy-to-let lending in 2026
By Alex King, Executive Director, Lendco
The first half of 2026 has shown that the buy-to-let market continues to adapt rather than retreat. While landlords have remained cautious, professional investors are still finding opportunities, supported by strong rental demand and a long-term view of the sector. We’ve seen many borrowers shift their focus towards strengthening existing portfolios through refinancing or improving asset performance, rather than expanding at pace. That reflects a more considered approach to investing, rather than any loss of confidence in the market itself. At Lendco, that has translated into sustained demand from experienced landlords who need a lender that can deal with more complex cases. Speed remains important, but brokers are placing just as much value on consistency and certainty. Whether it’s a multi-unit block, a house in multiple occupation or a property requiring refurbishment, borrowers want confidence that a lender will understand the transaction and see it through. We’ve also seen a shift in how landlords think about finance. The conversation isn’t centred solely on
rates but about choosing products that support an investment strategy from start to finish. That’s one reason Bridge-to-Let has continued to gain momentum, allowing borrowers to acquire, improve and refinance a property with one lending partner, while reducing friction throughout the process. The events surrounding the high-profile collapse of an industry lender inevitably became one of the defining moments of the first half of the year. While its collapse created understandable uncertainty across the specialist lending market, it also reinforced the importance of strong governance and sustainable funding. Brokers have become more focused on who sits behind a lender, not just the products they offer. Firms with established governance, disciplined underwriting and resilient funding structures were able to continue lending with confidence, providing much-needed stability during a period of heightened scrutiny. Looking ahead, we’re optimistic about the second half of 2026. Demand for rental property continues to outstrip supply, and experienced landlords
remain committed to growing and improving their portfolios. We expect brokers to place even greater emphasis on lender reliability, while innovation will continue to improve the customer journey. For Lendco, the focus remains unchanged: combining pragmatic underwriting with dependable funding and delivering the certainty that brokers and borrowers need, whatever the market conditions.
10 January - June 2026 Real Estate Funding Report
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