The share of buy-to-let mortgage applications for property purchases has fallen by almost a fifth in a year, as investors request larger loans but purchase more selectively against a backdrop of major rental reform, according to Commercial Trust's Q2 2026 Buy to Let Mortgage Index.
Purchase applications made up 24.2% of all applications submitted to the specialist 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 recorded 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.
At a glance:
- Landlords' purchase applications accounted for 24.2% of all mortgages recorded by
- Commercial Trust in Q2 2026, down from 29.8% a year earlier
- The average purchase loan rose 6.6% year-on-year, from £194,892 to £207,673
- Yorkshire and the Humber increased its share of purchase applications from 3.4% to
- 12.6%, continuing the northern pattern seen in Q1
- The East of England's share fell from 16.0% to 2.1%, while the North West was the largest purchase location at 14.7%
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%. The East of England fell from 17.6% to 3.6% over the same period.
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 share of purchase applications in Q2, at 14.7%, broadly unchanged from 15.1% a year earlier. The South East followed at 13.7%, then 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%.
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 year-on-year fall. Remortgaging also accounted for a larger share of applications, rising from 44.1% in Q2 2025 to 56.0% in Q2 2026.
"Landlords have not stopped buying, but the data shows they are becoming more selective," said Jorden Abbs, chief executive of Commercial Trust. "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."
