KBRA Releases Research – UK Buy-to-Let RMBS: Stabilising Credit, Broadening Issuance

LONDON--(BUSINESS WIRE)--KBRA releases research examining recent trends in the UK buy-to-let (BTL) market, including issuance and credit performance, as well as how tenancy reform and planned energy efficiency requirements could affect the sector over time. The BTL market has benefited from a more favourable interest rate environment, with lower borrowing costs and continued rental growth supporting landlord cash flow, interest coverage, and remortgaging capacity. Arrears among pre-2014 loans have declined, while those among post-2014 loans have remained broadly stable. These conditions have also supported BTL origination volumes, largely driven by remortgaging, alongside active residential mortgage-backed securities (RMBS) issuance.

Key Takeaways

• UK BTL RMBS issuance remains active: Total issuance through July 2026 was broadly in line with the same period in 2025, while new-issue volume, which excludes full and partial refinancing transactions, had already matched full-year 2025 levels. KBRA expects full-year issuance to modestly exceed 2025, with the majority of 2026 volume comprising new-issue transactions and potential legacy refinancing activity contributing to year-end volumes.
• Securitised credit performance remains vintage-dependent: Post-2014 BTL delinquencies declined modestly in Q2 2026 but remained elevated. Legacy delinquencies remain substantially higher, although they have declined in 2026 alongside lower borrowing costs and continued rental growth.
• Regulatory change will test landlord resilience: The Renters’ Rights Act 2025 could lengthen possession timelines and increase enforcement and carrying costs, while planned 2030 energy-efficiency standards could require additional investment and weigh on refinancing capacity. Better-capitalised professional landlords should be better positioned to absorb these changes.

Click here to view the report.

Related Publications

• 2025 European Securitisation: Expanding Volumes, Expanding Reach
• UK Mortgage and Housing Trends: May 2024 Update
• UK Buy-to-Let: A Brewing Remortgage Storm?

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

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