The share of buy to let landlord mortgage applications for property purchases has fallen by almost a fifth in a year, according to specialist broker Commercial Trust.
The lender’s Q2 2026 Buy To Let Mortgage Index says the move is because investors are requesting larger loans but purchasing more selectively in the light of the Renters Rights Act.
Purchase applications made up 24.2% of all applications submitted to the broker in Q2 2026, down from 29.8% in Q2 2025.
This represents an 18.9% year-on-year decline, more than twice the 9.1% relative fall in Q1 2026.
However, landlords seeking purchase finance requested larger loans. The average purchase loan rose by £12,781 year-on-year to £207,673, an increase of 6.6%. It was also £18,069, or 9.5%, higher than in Q1 2026.
Northern purchase pattern continues into Q2
In Q1 2026, the North East’s share of purchase applications rose from 5.5% to 14.4% year-on-year, while Yorkshire and the Humber increased from 6.6% to 13.7%. Over the same period, the East of England fell from 17.6% to 3.6%.
The same broad pattern remained visible in Q2. Yorkshire and the Humber accounted for 12.6% of purchase applications, almost four times its 3.4% share a year earlier. The North East increased from 1.7% to 8.4%, although this was below its Q1 peak.
The North West was the region with the largest purchase applications in Q2 at 14.7%, broadly unchanged from 15.1% a year earlier. It was followed by the South East at 13.7%, Yorkshire and the Humber at 12.6%, and the West Midlands at 11.6%.
By contrast, the East of England’s share fell from 16.0% to 2.1%. The East Midlands declined from 12.6% to 5.3%, while the South West fell from 15.1% to 7.4%.
First-half figures confirm a broader decline
Across the first half of 2026, purchases accounted for 26.1% of Commercial Trust mortgage applications, down from 29.2% in the same period of 2025. The decline therefore extends beyond a single quarter, although Q2 recorded the sharper fall year-on-year.
Remortgaging also accounted for a larger share of applications, rising from 44.1% in Q2 2025 to 56.0% in Q2 2026.
Jorden Abbs, chief executive, says: “Landlords have not stopped buying, but the data shows they are becoming more selective. Purchases now account for a smaller slice of applications, yet the average loan requested by buyers is higher.
“The continued interest in northern markets may reflect the value and rental returns landlords believe they can find there. Even so, no location should be treated as a shortcut. Investors still need to weigh up local demand, property costs and the finance available.
“A sustained decline in purchase activity would matter for rental supply. As the sector adapts to major reform, policy must protect tenants without making it harder for responsible landlords to add the homes renters need.
“The rise in remortgaging also shows that landlords are not standing still. Many are reviewing their existing finance, managing costs and putting themselves in a stronger position before making their next move.”
This article is taken from Landlord Today