Why buy to let and first-time buyers move together

As we move further into 2026, a familiar narrative is resurfacing, that a stronger first-time buyer market must come at the expense of buy-to-let.

It’s a simple argument. But it doesn’t reflect how the housing market really works.

Owner-occupiers, renters and landlords operate within the same system. Activity in one area often supports movement in another. Framing first-time buyers and buy-to-let as opponents risks missing the bigger picture.

Why the renewed focus on first-time buyers?

In recent months, many mainstream lenders have sharpened their focus on first-time buyers. Higher LTVs, pricing tweaks and targeted schemes have all aimed to stimulate demand.

But the early months of 2026 have been steady rather than spectacular. The anticipated surge in first-time buyer activity hasn’t fully materialised. In that context, lender innovation looks less like a shift away from other sectors and more like an attempt to unlock momentum.

This isn’t about crowding out buy-to-let. It’s about encouraging activity wherever it can be found.

First-time buyers don’t operate in isolation

First-time buyers rely heavily on movement further up the chain. When existing homeowners aren’t moving, supply remains tight and transactions slow.

We also continue to face an undersupply of new homes. Product innovation can help, but it can’t solve structural supply constraints.

That has implications for the private rented sector. When would-be buyers can’t purchase, they rent for longer and many renters either choose not to buy or aren’t yet able to do so. Rental demand, therefore, remains structural rather than cyclical.

Are landlords really selling to first-time buyers?

Headlines often suggest landlords are selling up and first-time buyers are stepping in. In practice, the overlap is limited.

Stock type, location and tenant profile all matter. Properties suited to HMOs, professional lets or specific local demand aren’t always aligned with first-time buyer preferences. More often, we see properties sold by one landlord being acquired by another, particularly as portfolios consolidate.

Markets move together

Historically, buy-to-let and owner-occupier activity tend to rise and fall together. When confidence improves and finance is accessible, both sectors benefit. When rates rise or uncertainty increases, activity typically slows across the board.

The same fundamentals drive both markets, confidence, affordability, supply and access to credit. This isn’t a zero-sum game, but one housing system responding to the same pressures.

What advisers should take from this

For advisers, the key is to look beyond surface narratives. A renewed focus on first-time buyers does not signal a decline in buy-to-let advice demand.

A significant volume of buy-to-let mortgages are maturing through 2026. Some landlords will want straightforward product transfers or like-for-like remortgages. Others will look to release equity to support further purchases or strengthen portfolio performance.

The opportunity is there. Advisers who understand how the whole system fits together will be best placed to support both first-time buyers and landlords.

Housing works as an ecosystem, not a tug of war. In a more stable, steadily active market, there is room for both to move forward.

If you want to discuss your next case or have any questions then please reach out to your local BDM.