Our advice for growing your property portfolio during 2026 and beyond

As we make our way into the fourth quarter of 2026 and look to a whole new year, analysing the current state of the UK buy-to-let market makes for grim reading! The market can best be described as ‘challenging’, but it’s not all bad news for landlords and those looking to grow their portfolios further.

Rents are still on the rise, with a monthly increase of 3.7% to £1,393, making the buy-to-let market a lucrative place to be. Yields have also improved with buy-to-let lending particularly active too. New rules however are meaning more costs and more concerns for UK landlords as The Independent Landlord explains:

“It’s not just the Renters’ Rights Act in 2026. Making Tax Digital for unincorporated landlords started rolling out from April, new metrics for measuring the energy efficiency of residential properties will be confirmed later in 2026, the long-awaited draft Commonhold and Leasehold Reform Bill has now been published, and (hopefully) there will finally be progress on the much needed regulation of letting agents.”

With costs increasing and regulation changing for UK landlords, proceeding with caution and the following top tips is recommended…

The numbers have never been so important

While historically it’s more affordable property prices that have spurred on buy-to-let investment, numbers like rental income and financing costs need closer inspection.

It’s the rental income, purchase price and financing costs that work together to produce better outcomes for landlords. This means before you go ahead with your purchase it is important to model the costs of mortgage interest, property management, maintenance, insurance, service charges, void periods, compliance, tax, and even future mortgage rates. These costs may considerably affect just how attractive that gross yield actually is.

Consider the property type equally as carefully

The best buy-to-let investment is also not what it used to be, and the most profitable property type varies considerably up and down the country. With this in mind, consider what tenants in your target investment area actually want and need. Young professionals for example might favour well connected two-bedroom apartments, while families are likely to prioritise garden space, off-street parking and good local schools.

Before committing, ask who will rent the property and why your target tenant might choose this over other alternatives available on the market. The answer could help you secure a valuable asset.

Base your buying decision on rental demand

With rental demand continuing to rise, and house prices becoming stagnant across many parts of the UK, chasing strong rental demand rather than capital growth is recommended for those looking to expand their portfolios during the months ahead.

Strong, sustainable rental demand is king, and if your investment property generates sensible cash flow and appreciates in time, that’s a bonus!

Get independent mortgage advice now

As your portfolio grows, financing decisions become much more complex. The mortgage that works for one property may not be the right choice for the next, particularly if you already own several. That’s where support from an independent mortgage advisor like us comes in handy.

Here at The Mortgage Bureau, we look at your property portfolio as a whole, assessing how much you can realistically borrow, comparing lenders and helping you structure your next purchase around your longer term plans.

For landlords planning to grow during 2026 and into 2027, our independent mortgage advice is the difference between devising a supportive financing strategy and simply securing your next mortgage. Contact our buy-to-let mortgage experts today for further advice.