Comment: UK Finance’s Buy-to-let Mortgage Market Update Q2 2025

22 October 2025

Commenting on UK Finance’s Buy-to-let Mortgage Market Update – Q2 2025, Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, said:

“Although mortgage completions were lower than the first quarter of the year and when compared to the same period in 2024, they must be viewed in the context of the market distortion brought about by changes to Stamp Duty at the end of March. Landlords brought forward transactions to benefit from the higher Stamp Duty thresholds and lower their tax exposure.

There were over 9,500 mortgaged house purchase completions in March, compared to fewer than 3,500 in April, highlighting the impact of changes to Stamp Duty on the normal flow of business. However, market activity has been positively building back up throughout the second quarter and into the third.

More broadly, it’s also interesting to note an uplift in the value of outstanding balances. These have been increasing since the second half of last year and now sit above £300 billion, something not seen since the second quarter of 2023.”