The UK buy-to-let sector is experiencing a resurgence, with a sharp increase in borrowing highlighting renewed confidence among landlords and property investors. Despite recent economic uncertainty, the market has shown strong resilience, underpinned by high rental demand and forecasts of continued capital growth.
Lending on the Rise
According to recent industry data, buy-to-let mortgage lending has climbed significantly in 2025 as investors seek to expand portfolios and capitalise on favourable conditions. Record levels of tenant demand, coupled with rental price growth across key UK regions, are encouraging both seasoned and first-time landlords to enter the market.
Investor Motivations
Several factors are driving the surge in borrowing:
- Strong rental demand – Driven by a shortage of housing supply and growing populations in major cities.
- Attractive yields – In high-growth regions such as the North West, yields of 6% or more remain achievable.
- Long-term capital growth – Savills forecasts property values in the North West will rise by 28.2% by 2029, reinforcing investor confidence.
- Portfolio diversification – Many investors are turning to property as a stable alternative to more volatile asset classes.
Regional Hotspots
Cities such as Manchester, Liverpool, and Leeds continue to stand out as hotspots for buy-to-let investment. Regeneration, employment growth, and large student populations underpin tenant demand, helping landlords secure reliable rental income.
North Fox Perspective
Specialist property consultancy North Fox Property notes that the increased activity in the mortgage market reflects a broader shift in sentiment. Despite rising interest rates in recent years, investors are adapting to the new environment, focusing on regions and developments that offer strong fundamentals and long-term value.
By guiding clients through sourcing, financing, and portfolio management, North Fox ensures investors are well-positioned to take advantage of this renewed momentum in the buy-to-let market.
The recent surge in buy-to-let borrowing underlines the resilience and appeal of UK property. With strong rental demand, attractive yields, and forecasts of substantial growth in the years ahead, property remains a cornerstone of investor portfolios.
For more insights, visit North Fox Property.
Photo by Ollie Craig
