Confidence Returns to the Buy-To-Let Market

📈 Confidence Returns to the Buy-to-Let Market – But Staying Compliant Has Never Been More Important

There has been plenty of discussion surrounding the private rental sector over the past year, with legislative changes, higher borrowing costs and evolving market conditions creating challenges for many landlords. However, some encouraging new figures suggest confidence is beginning to return to the buy-to-let market.

At the same time, the continued rollout of the Renters’ Rights Act means landlords must remain proactive in ensuring their properties and tenancies are fully compliant.

So, what does the latest news mean for landlords across Derby and Derbyshire?

🏡 Buy-to-let lending shows positive signs

Fresh figures released by UK Finance reveal that landlords secured 58,272 new buy-to-let loans worth £10.8 billion during the first quarter of 2026 – an increase on the same period last year.

The data also shows several other encouraging trends:

✅ Buy-to-let lending increased year-on-year.

✅ Average borrowing rates have fallen compared with last year.

✅ Rental yields have improved.

✅ Mortgage arrears have reduced.

Together, these figures paint a much more positive picture for the sector than many had anticipated.

Whilst many landlords have spent the past couple of years navigating higher interest rates and increased costs, improving mortgage products and stronger rental yields appear to be restoring confidence among property investors.

Many landlords are also choosing to refinance existing portfolios, taking advantage of lower fixed-rate products as the mortgage market becomes increasingly competitive.

For prospective investors, this could provide reassurance that the market continues to offer long-term opportunities, particularly in areas where tenant demand remains consistently high.

📋 Compliance remains a key priority

Whilst the lending outlook is improving, the legal landscape continues to evolve.

Since the introduction of the Renters’ Rights Act earlier this year, landlords have been adapting to significant changes affecting the private rented sector.

The reforms are designed to improve standards for tenants and introduce greater consistency across the industry. Alongside changes to tenancy agreements and possession processes, the legislation also gives local authorities stronger powers to investigate and enforce standards where landlords fail to meet their legal obligations.

For responsible landlords, these changes shouldn’t be viewed as a cause for concern—but they do highlight the importance of ensuring every aspect of a tenancy is managed correctly.

This includes:

Keeping all legally required safety certificates up to date.
Ensuring properties continue to meet the required standards.
Maintaining accurate tenancy documentation.
Staying informed about ongoing legislative updates.

Professional management can also provide valuable peace of mind, helping landlords remain compliant while protecting both their investment and their tenants.

📍 What does this mean for landlords in Derby?

Here in Derby and Derbyshire, tenant demand continues to remain strong across many areas, making well-presented rental properties highly sought after.

The combination of improving mortgage conditions and healthy rental demand is undoubtedly positive news for landlords looking to retain or expand their portfolios.

However, today’s market is about much more than simply finding a tenant.

With legislation continuing to evolve, landlords need to ensure they remain fully compliant whilst providing quality accommodation that meets modern expectations.

Working alongside an experienced local letting agent can help navigate these changes, minimise risk and maximise the long-term performance of your investment.

💬 Thinking of letting your property?

Whether you’re an experienced landlord, considering expanding your portfolio or thinking about letting a property for the first time, our experienced lettings team is here to help.

If you would like tailored advice about buying, selling, mortgages or investing locally, get in touch with your nearest Hannells branch or arrange a free, no-obligation property valuation today.