Buy-to-Let Lending

2024 Q3

Published on 22/1/2025

• 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 per cent by number (8.9 per cent by value) compared with the same quarter in the previous year.
• The average gross buy-to-let rental yield for the UK in Q3 2024 was 6.93 per cent, compared with 6.53 per cent 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. This was 0.03 basis points higher than in the previous quarter, but 0.09 basis points lower than in the same quarter of 2023.
• Reflecting the movements in interest rates, the average buy-to-let interest cover ratio (ICR) for the UK in Q3 2024 was 195 per cent, still up from 190 per cent in Q1 2024, and 9 basis points higher than a year previously.
• The number of BTL fixed rate mortgages outstanding in Q3 2024 was 1.4 million, 3.3 per cent up on a year previously. In contrast, the number of variable rate loans outstanding fell by 14.9 per cent to 541,488.
• At the end of Q3 2024 there were 13,000 buy-to-let mortgages in arrears greater than 2.5 per cent of the outstanding balance. This was down 570 from the previous quarter but 19 per cent higher than in the same quarter a year previously.
• There were 710 buy-to-let mortgage possessions taken in Q3 2024. This is unchanged from the previous quarter, but an increase of 73.2 per cent on the same quarter a year previously.