Andrew Ferguson, head of buy-to-let (BTL) at West One, has expressed optimism about the market’s future.
He stated that predictions of the sector’s decline were inaccurate, noting that it evolved to meet the changing needs of landlords and tenants in the UK housing market.
Ferguson pointed out that some forecasters were overly negative, asserting that the BTL sector proved to be resilient.
He mentioned that previous lending predictions were too cautious, and that the potential for growth is still significant.
The Intermediary Mortgage Lenders Association (IMLA) recently projected that BTL lending would rise by 14% to £38bn in 2025, followed by an 11% increase to £42bn in 2026.
Ferguson said: “I understand the recent market conditions have caused many market watchers to be downbeat on BTL, particularly with the Renters Rights Bill, which places further restrictions on landlords, coming down the line.
“But those predicting the demise of the sector are overly pessimistic.
“The [BTL] market is evolving, not dying and it remains a critical pillar of the UK housing market. Those of us that work in it know that.”
Ferguson added: “Market naysayers may point to pessimistic projections for the BTL market in 2025 as further evidence of a terminal decline. Such a conclusion is incredibly short-sighted.
“To date, landlords have weathered significant pressures, from tax relief changes to increased regulation.
“Despite that, the private rented sector remains essential, housing nearly one in five households in the UK.”
He said: “Policymakers do understand that a healthy private rented sector is vital to avoid a housing shortfall while other housing initiatives, such as social housing, are still years away from meeting demand.
“It is important to consult the data and projections of multiple sources when considering predictions like these.
“However, the IMLA rightly stands out in its forecast that bolsters the fact that BTL is not on the way out, but on the way into a new era as it passes through what has been a turbulent period in the BTL environment.”
He added: “Its numbers give reason to be optimistic about BTL gross lending in 2025, and although challenges remain and uncertainty persists, the BTL market was resilient in 2024 and if some of those head winds change direction, I am certain we may see greater growth than many are predicting.”