The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

Instead, momentum is building in more complex, specialist segments — with buy-to-let leading the charge.

Together Money predicts specialist mortgage lending will grow by 70% by 2029, and specialist buy-to-let is fast becoming one of the most active areas within that expansion. What was once a niche offering has moved firmly into the mainstream, driven by changing landlord behaviour and shifting economic conditions.

Brokers are seeing this first-hand. Findings from our latest research paper, New Foundations: Building the next era of buy-to-let lending, show that most brokers experienced an increase in specialist BTL demand over the past year. Three-quarters reported growth in limited company borrowing, as landlords seek tax efficiency, flexibility and resilience through corporate structures.

Yet despite these signals, a disconnect remains. Lender investment, broker demand and borrower needs are not always aligned — and that misalignment risks holding back a market with strong long-term potential.

A market reshaped by limited companies

Specialist BTL is undergoing a structural transition. Individual landlords are increasingly giving way to limited company and portfolio investors, a trend that presents both opportunity and complexity for lenders.

Data from Hamptons shows that by October 2024, between 70% and 75% of new buy-to-let purchases were being made through limited companies. This shift changes the underwriting challenge entirely. Company structures, layered income sources and portfolio considerations require more nuanced credit assessment and greater operational flexibility.

While lenders recognise the opportunity, confidence in the depth of broker demand appears mixed. Finova’s research shows that 62% of specialist lenders cite concerns around insufficient broker demand, while 44% worry about profitability. However, these concerns appear to run counter to broker sentiment. In the same research, 63% of brokers said demand for specialist products from their clients has increased.

This suggests the challenge is not demand, but alignment. Communication gaps between brokers and lenders are limiting how effectively opportunity is translated into product development and lending strategy.

Technology as an enabler, not a barrier

As specialist BTL grows in complexity, technology becomes a decisive factor. Many lenders are still operating origination systems designed for simpler borrower profiles. These platforms struggle when faced with portfolio landlords, limited company structures or non-standard income.

It’s telling that 44% of lenders surveyed say borrowers with complex needs are the most underserved — precisely the segment driving growth in specialist BTL.

Modular origination platforms offer a practical way forward. These systems can sit alongside existing infrastructure, allowing lenders to launch new products quickly, automate standard processes and retain manual oversight where complexity demands it. More than a third of lenders say they are actively considering adopting a modular platform, with nearly 30% already in place.

Crucially, these platforms have matured. Implementation timelines have shortened from years to months, costs have become more competitive, and security and scalability are now table stakes rather than aspirations.

A defining moment for specialist BTL

Specialist buy-to-let is reaching a pivotal stage. Demand is growing, borrower profiles are evolving, and brokers are clearly articulating what the market needs. Success will hinge on lenders’ ability to listen, adapt and invest with purpose.

Those who strengthen broker relationships, modernise origination capabilities and design for complexity will be best positioned to capture the next phase of growth. In a market being reshaped in real time, agility and collaboration will define the winners.