There were 59,467 new buy-to-let loans advanced in the UK, worth £10.9bn, in Q3 2025, a rise of 22.7% on the same quarter in 2024 according to UK Finance.

The average gross buy-to-let rental yield for the UK in Q3 2025 was 7.15%, up from the 6.93 in the same quarter in the previous year.

Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “The marked uplift in the value and number of buy-to-let mortgages written compared to the previous quarter, and particularly the same period a year ago, demonstrates how landlords will invest in buy-to-let property when market conditions allow.”

“The third quarter saw strong levels of remortgage activity, the highest since the final quarter of 2022, partly driven by landlords releasing equity to fund new acquisition.”

The average interest rate across all new buy-to-let loans in the UK was 4.85% in Q3 2025. This was 15 basis points lower than in the previous quarter, and 37 basis points lower than in the same quarter of 2024.