Around 220,000 rented homes are expected to leave the private rental sector by the end of 2026, equivalent to roughly 5% of England's private rental stock, according to research by Pepper Money.
The Renters' Rights Act is driving more than 65,000 of those exits, and single-property landlords are twice as likely to leave the market as those with larger portfolios.
Against that backdrop, the specialist lender has cut its buy-to-let mortgage rates, with products now starting from 4.64%, as part of a broader package of rate reductions across its residential and buy-to-let ranges.
"Affordability is still one of the biggest challenges brokers are navigating for their customers, especially when rates are moving as quickly as they have been," said Paul Adams, sales director at Pepper Money (pictured).
"Often, 2-year affordability can be difficult to make work. But at the same time, a lot of customers don't want to lock in for longer when they're unsure where rates will go. This Limited Edition product gives brokers a way to structure cases that work for the customer today and doesn't leave them worse off when they come to revert.
"The reductions across our Pepper 48 and Pepper 48 Light ranges reflect our continued focus on giving brokers more choice. These are products for customers who are one step away from the high street, and the right rate can make a real difference to whether a case gets done."
On the residential side, Pepper Money has reduced its Pepper 48 and Pepper 48 Light 2-year fixed rates at 90% LTV by 0.80%, bringing them to 6.99% and 6.94% respectively. Five-year fixed rates across the same ranges have also been cut by up to 0.32% at 90% LTV. Residential rates now start from 5.75%.
The Pepper 48 and Pepper 48 Light products target borrowers who fall just outside mainstream lending criteria and are working to rebuild their credit. Pepper Money's Specialist Lending Study found that 8.21 million people have missed a credit payment in the last three years, leaving them unable to pass standard credit scores.
Alongside the core range reductions, Pepper Money has launched a limited edition 2-year fixed product with a dual-rate structure. It offers two options: one with a lower initial rate and a higher reversion rate, which maximises borrowing power at the point of application, and one with a higher initial rate and a lower reversion rate, which reduces the ongoing cost once the fixed period ends.
Both sit either side of the core range reversion rate.
The structure suits borrowers who want the security of a shorter fixed term while building their credit profile, without taking a product that either fails affordability at application or carries unnecessary long-term cost.
