New research indicates that landlords are continuing to invest in London's buy-to-let market despite ongoing government regulation. UK Finance data shows that 16,026 properties were purchased using buy-to-let mortgages across the UK in the second quarter of 2026, marking a 23% increase compared to the same period in 2025.
Chestertons reports improving confidence in London's wider property market. Buyer enquiries and registrations increased year-on-year in October for the first time in over a year, alongside a rise in new tenant registrations.
Average monthly asking rents in the capital rose by 3.2% year-on-year to £2,825 in the third quarter of 2026, according to Rightmove’s Rental Trends Tracker. This compares to an annual growth of 2.4% across the rest of Britain.
Katinka Hill, head of lettings at Chestertons, noted that opportunities exist for investors purchasing through limited companies, particularly those looking to expand their rental portfolios. She added that renewed buy-to-let investment could help maintain the supply of homes for tenants.
In London's residential sales market, Chestertons' October figures also show improving confidence. Property portal enquiries were up 2.8% year-on-year and new buyer registrations increased by 6%.