Mortgage rates have risen sharply over the last month to April 2026, pushing a growing share of buy-to-let borrowing above the 5% threshold and materially increasing costs for landlords, according to Hamptons.

The average mortgage rate secured by a landlord in April 2026 has risen to 4.84%, up from 4.20% in January 2026. The average landlord taking out a two-year fixed-rate product secured a rate of 4.73% (+0.63% since January), while the average investor opting for a five-year fix paid 4.94% (+0.74%).

Aneisha Beveridge, Head of Research at Hamptons, said: “Rising mortgage rates are once again shaping landlord behaviour, as many look for ways to manage higher borrowing costs. The last time interest rates rose sharply back in 2022, they unleashed record rental growth. Landlords were able to pass higher mortgage costs on to tenants as would-be buyers increasingly chose to rent until rates began falling back, stoking demand for rental homes. In effect, three or four years of typical rental growth were squeezed into the space of 12 months.”

“While rents fell last year, early signs suggest the pace of rental growth is beginning to pick up as tenant demand rebounds and mortgage rates rise. The falls recorded in 2025 have already been wiped out, while the 24% annual increase in tenants starting the search for a new home in March was the largest since our records began.

“While stronger rental growth may help landlords balance the books over the medium to long term, mortgage stress tests mean they must also remain profitable in the short term, even at higher rates. For many, that means keeping mortgage payments at an affordable share of the rent – whether by paying down debt or moving over to interest-only deals with lower monthly costs.”