Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
30 Years of Buy-to-Let: Paragon Report Finds Myths 'Stubborn to Shift'
Buy-to-let mortgages have reached the 30th anniversary of their public launch into UK markets, marked by a new Paragon report, '30 years of buy-to-let'. The report records 1.92 million BTL mortgages outstanding in 2025, with a combined value of £311.6bn, compared with 120,300 mortgages worth £9.1bn in 2000.
A Market Transformed
According to the report, gross BTL lending totalled £753bn between 2002 and 2025. In 2025, almost 70% of all BTL lending by value was remortgaging, which Paragon said reflected a market increasingly driven by experienced landlords refinancing existing portfolios rather than purchasing new properties.
The report also highlights the rise of the professional landlord. While 45% of landlords own just one property, landlords with five or more properties account for 49% of all tenancies, despite making up only 17% of landlords. Paragon argued this shows housing provision is increasingly concentrated among larger, professional operators.
Industry Voices
Nigel Terrington, CEO of Paragon Banking Group, said the fundamentals behind buy-to-let remain strong, citing population growth, later homeownership, affordability pressures, student demand, labour mobility and limited housing supply as continuing to support demand for rented homes. He added that one of his greatest frustrations is that buy-to-let is still too often misunderstood, with several myths from its early years proving stubborn to shift, particularly around what the product is, the role it serves and the problem it helps to solve.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said many landlords now operate their portfolios as businesses, taking a long-term view of investment and responding to changing tenant expectations, housing standards and regulation. The result, she said, is a market that is more professional and commercially focused than when buy-to-let first emerged.
John Heron, former Paragon executive director and one of the key figures involved in the creation of BTL, said the evolution has been accompanied by higher standards, more sophisticated lending and a much greater understanding of the role the private rented sector plays within the wider housing market.
What It Means for Agents and Clerks
For letting agents and inventory clerks, the findings point to a rental market increasingly managed by professional, portfolio-based operators. The report links this shift to higher standards and greater responsiveness to tenant expectations, housing standards and regulation.
Source: Mortgage Solutions