Three Reasons Savvy Investors Are Still Buying UK Property in 2026
Despite higher mortgage rates, economic uncertainty and changes brought about by the Renters’ Rights Act, many prospective investors are asking the same question: “Is now really the right time to invest?”
Interestingly, while some landlords are stepping away from the market, many experienced investors are doing exactly the opposite. Why? Because successful property investing has never been about chasing headlines. It’s about recognising long-term trends, buying well and making informed decisions.
Here are three reasons why many savvy investors – particularly UK expats – are continuing to build their portfolios in 2026.
1. Strong Rental Demand and Less Competition
Demand for quality rental accommodation across much of the UK continues to outstrip supply.
The introduction of the Renters’ Rights Act has prompted many smaller, accidental and non-portfolio landlords to exit the market rather than adapt to the new regulatory environment. Every landlord who sells a rental property without another landlord replacing them potentially reduces the supply of homes available to rent.
We’re also seeing growing activity within the auction market as investors restructure portfolios and landlords dispose of properties. This is creating fresh opportunities for buyers looking to acquire properties with strong investment potential or value-add opportunities.
The latest newsletter from EIG Property Auctions highlights the increase in auction activity and provides an interesting insight into current market conditions.
For long-term investors, reduced rental supply combined with resilient tenant demand can create an attractive backdrop for future portfolio growth.
2. Rental Income Has Continued to Grow
Although mortgage interest rates remain higher than they were a few years ago, rental income has also increased significantly.
According to the Office for National Statistics, average UK private rents increased by 3.3% over the year to June 2026, while the North East recorded rental growth of 6.3%, making it one of the strongest-performing regions in the country. For investors buying in areas with strong yields, increasing rents can help absorb higher borrowing costs while maintaining attractive monthly cash flow.
For investors focused on long-term wealth creation, the equation is about far more than today’s mortgage rate. Rental income, capital growth, mortgage repayment by tenants and future refinancing opportunities all contribute towards the overall return from an investment property.
3. More Mortgage Options Than Ever Before
Perhaps the biggest positive change for UK expats is the dramatic increase in specialist mortgage products now available. Today, specialist lenders can often consider applicants who are:
- UK expats living overseas
- Self-employed with modest taxable income
- First Time Buyers
- First Time Landlords
- Purchasing through a Limited Company
- Applying without a minimum earned income requirement, subject to lender criteria
This flexibility is allowing many investors to enter the market who simply wouldn’t have qualified a few years ago.
Case Study: Jane in Australia
Take Jane, a self-employed UK expat living in Australia. After selling her Australian home, she decided to reinvest part of the equity into UK property. Although her taxable income appeared relatively modest, specialist lender criteria meant she was still able to secure UK ltd co BTL finance. Using approximately £150,000 for deposits and purchasing costs, Jane purchased three semi-detached homes in the North East of England through a Limited Company.
Each property was financed using an 80% loan-to-value First Time Buyer, First Time Landlord Buy-to-Let mortgage, enabling her to spread her capital across three income-producing properties rather than purchasing a single investment outright.
She is now building a portfolio that has the potential to generate monthly rental income today while benefiting from future capital growth and the opportunity to recycle equity into additional purchases over time.
Why Advice Matters
At MyMortgageDeal, we specialise in helping UK expats and overseas investors access mortgage solutions that many mainstream banks simply don’t offer.
Whether you’re a First Time Buyer, First Time Landlord, experienced investor or purchasing through a Limited Company, we’d be delighted to explore what’s possible.
As an expat you may be unsure what might be possible or what your next move should be and we are on hand to help explore the options available to you.
Market Updates
- A New UK prime minister – with Andy Burnham new to number 10, there are already calls to bring in rent caps.. but is it really likely ? read it here.
- ‘I’d sell all my properties if this happened!!’- A great listen to our friends Rob & Rob who explain what might make them leave the UK property market …. Listen here.
- Landlords need to be picky with their tenants – this BBC panorama show outlines the dangers of selecting tenants for their investment properties.. watch it here.
- Deal of the Week: 2 Yr Expat Tracker for Expat Residential at 4.45% to 75% with FREE valuation & no early repay fees throughout the term – there are still some exceptional deals out there for expats. Enquire now
Next Steps…
Book a Free Discovery call here & if your not sure what a discovery call is all about Ive made a series of videos on what to expect here.
A Great way to get frequent updates, hints & tips and insider industry knowledge of the complex / expat mortgage market is to join our YouTube channel here.
Our Quick 60sec Quote page allows you to obtain the latest rates to be expected and you can request a specific quote by sending an email to info@mymortgagedeal.co.uk