
That’s according to banking association, UK Finance, which has published its latest buy-to-let lending figures. Despite the arrears figures showing a fall of 570 from the previous quarter, they are now 19% higher than in the same quarter a year ago.
There were 710 buy-to-let mortgage possessions taken in Q3 2024, unchanged from the previous quarter, but a massive 73.2% rise on the same quarter a year previously.
Yields tick up
Average buy-to-let rental yields in Q3 2024 were 6.93%, a rise from 6.53% in the same quarter in the previous year.
The average interest rate across all new buy-to-let loans in the UK was 5.22 per cent in Q3 2024, which was broadly unchanged at 0.03 percentage points higher than in the previous quarter, but 0.09 percentage points lower than in the same quarter of 2023.
Mortgage lending rose over the past year, said UK Finance. In Q3 2024 there were 48,862 new buy-to-let loans advanced in the UK, worth £8.6 billion. This was up 6.5% by number and 8.9% by value year-on-year. Drilling down further into these figures, lending for house purchase alone was up by 19.8% year on year.

Your Mortgage Awards 2024/25: winners revealed
Sponsored by Your Mortgage Awards
Oli Bland, director of lending at Black & White Bridging, said: “The Q3 2024 figures from UK Finance paint a mixed picture of the buy-to-let market. New loans rose by 6.5% year-on-year, and average rental yields increased to 6.93%, reflecting pockets of opportunity for landlords who can navigate the challenges. The North continues to attract investors with its lower entry costs and higher returns, while the growth in fixed-rate mortgages—up 3.3% on the year—shows a shift towards greater stability amidst ongoing economic uncertainty.
“However, the rise in arrears and possessions highlights the pressures many landlords are facing, with increasing costs and policy changes squeezing profitability. While the decline in arrears compared to the previous quarter is a positive sign, it’s clear that the sector remains under strain. For landlords who are prepared to adapt, there are still viable opportunities, but the overall environment requires careful planning and a long-term perspective.”