The South East has become the UK’s second-largest location for buy to let purchase mortgage applications, while a greater proportion of buyers in the region now live locally – according to mortgage broker Commercial Trust.
The region accounted for 13.7 per cent of all purchase applications submitted to Commercial Trust in Q2 2026 – up from 10.9 per cent in the same period last year.
This put it second only to the North West at 14.7 per cent.
The South East also became more locally focused, with the proportion of buyers purchasing in the region who already lived there rising from 59.6 per cent to 88.5 per cent year on year.
Purchase applications made up 24.2 per cent of all applications submitted to Commercial Trust in Q2 2026 – down from 29.8 per cent in Q2 2025.
However, landlords seeking purchase finance requested larger loans, with the average purchase loan rising by £12,781 year on year – or by £18,069 from Q1 2026 – to £207,673.
Across the first half of 2026, purchases accounted for 26.1 per cent of Commercial Trust’s mortgage applications – down from 29.2 per cent – while remortgaging accounted for a larger share of applications, rising from 44.1 per cent in Q2 2025 to 56.0 per cent in Q2 2026.
Jorden Abbs, chief executive of Commercial Trust, said: “Landlords have not stopped buying, but the data shows they are becoming more selective.
“Purchases now account for a smaller slice of applications, yet the average loan requested by buyers is higher.
“The South East’s increased share of purchase applications and stronger local buying may reflect the opportunities landlords believe they can find close to home.
“Even so, no location should be treated as a shortcut. Investors still need to weigh up local demand, property costs and the finance available.
“A sustained decline in purchase activity would matter for rental supply.
“As the sector adapts to major reform, policy must protect tenants without making it harder for responsible landlords to add the homes renters need.
“The rise in remortgaging also shows that landlords are not standing still.
“Many are reviewing their existing finance, managing costs and putting themselves in a stronger position before making their next move.”