Is the buy-to-let market back in action? After a few tough years, things are looking brighter, and lenders are reporting a surge in activity.

It seems those gloomy days of falling prices and hesitant investors may be finally behind us. Experts say the market is experiencing a much-needed rebound, with lenders like Together seeing a big increase in demand for buy-to-let loans.

What’s driving this change? Well, it’s a mix of good news:

• Interest rates are going down: The Bank of England has already cut rates this month, and more reductions are expected, making it cheaper for landlords to borrow money.
• Stability is back: The new Labour government is giving businesses a sense of security, which is leading to more confidence in the long-term prospects of the property market.

Mainstream Banks vs. Specialist Lenders – Who Wins?

This rebound is especially noticeable in the specialist lending market, which caters to borrowers who might not be able to get loans from the big high street banks. Together, a specialist lender with a 50-year track record, reported a record-breaking £330 million added to their loan book in June alone! This brings their total lending for the year to over £7 billion.

Why are specialist lenders seeing such strong growth? Ryan Etchells, chief commercial officer at Together, explains that mainstream banks often have a “lazy” approach to credit checks, which might not fully assess a borrower’s financial situation. This is where specialist lenders step in, taking a more “commonsense view” and considering borrowers on a case-by-case basis.

This means more landlords who might have been turned away by traditional banks can now access the funds they need to invest in property.

A Buy-to-Let Market on the Rise

The buy-to-let market is showing signs of a strong comeback, driven by falling interest rates, a more stable political environment, and a shift towards specialist lenders who are more willing to work with landlords who might not meet the strict criteria of mainstream banks. If you’re thinking of investing in property, now might be the perfect time to get involved!