Molo: What brokers should expect from the Buy-to-Let market in 2026

As 2026 comes into view, buy-to-let is entering a more considered phase. Landlords who focus on how their investments are funded and perform stand to see the best results, particularly those who pay less attention to the headlines.

From a lender perspective, the market is being shaped less by urgency and more by opportunity for well-structured applications.

International demand remains resilient

Overseas investors continue to play an active role in the UK buy-to-let market, particularly through company structures and a long-term focus on rental income. Northern regions are showing their strength, with the Northeast producing average yields of 9.3% compared to 5.7% in London. Manchester and Birmingham are similarly appealing, providing higher returns and more accessible price points than southern markets.

It is a pattern that reinforces where international demand is most active and how it is being shaped.

Remortgaging becomes a point of review

A significant number of fixed-rate mortgages will mature in 2026, many of which were taken out during the low-rate period of 2021. Rather than creating pressure across the market, landlords can review how their investments are funded and whether assets still align with their longer-term plans.

Some will remortgage on a like-for-like basis to maintain stability. Others will use the opportunity to release capital where rental growth supports it, reallocating funds into higher-yielding properties or regions with stronger performances. With interest rates easing from recent highs, confidence around refinancing has improved. Predictions suggest the base rate could be down to 3% by the end of 2026.

Gross yields above 7% across England and Wales, which continues to support active investment where deals are well structured.

A more professional market

The landlord profile continues to change, with fewer investors operating on a casual basis and more adopting limited company structures from the outset. Research shows a rising share of landlords are structuring ownership through limited companies, a trend driven in part by tax considerations and planning flexibility. Company buy-to-let now accounts for a substantial portion of new lending activity.

Lenders have responded with broader product ranges. At Molo, we offer buy-to-let mortgages for LTD companies, along with a range of specialist services that include HMO, holiday lets and MUFBs.

Making tax digital

Making Tax Digital for Income Tax comes into effect in April 2026, bringing with it a new consideration for property investors. Landlords with income over £50,000 will need to maintain digital records and submit quarterly updates to HMRC, moving away from the traditional annual return.

Investors earning between £30,000 and £50,000 follow a year later. The change is not necessarily a dramatic one, but it does introduce additional reporting requirements and shorter filing windows.

A market for considered decisions

2026 is shaping up as a year that rewards preparation, with landlords who are willing to adapt potentially seeing the most progress. For brokers, the opportunity lies in supporting clients who remain active and informed, those who have a clear focus on long-term performance within a more settled market.

Molo operates across the full spectrum of the buy-to-let market. Whether supporting new landlords or experienced portfolio holders, individual ownership or corporate structures, we reflect the diversity brokers are working with. With pricing from 2.54% and underwriting that recognises varied investor profiles mean we are equipped for the demands of 2026.

Get ahead of 2026 with your cases. Speak to Molo Finance’s BDM team.