By Hamza Behzad, Business Development Director, Finova
The specialist buy-to-let market is changing shape. What was once dominated by small-scale landlords with relatively simple requirements is increasingly being driven by professional investors managing more complex portfolios. Limited company structures, portfolio lending and specialist property types are now firmly part of the mainstream.
This shift is no longer anecdotal. Finova’s latest research, New Foundations: Building the next era of buy-to-let lending, shows that 63% of brokers have seen an increase in appetite for specialist BTL products over the past year, underlining just how quickly demand is evolving. The research explores how this change is playing out across lenders, brokers and building societies — and where opportunities are opening up for those able to respond.
Broker demand is rising fast
One of the clearest signals from the research is the strength of broker-led demand. Nearly two thirds (63%) of brokers say appetite for specialist BTL products has increased over the past year, with limited company BTL standing out as a key growth area. In fact, three quarters (75%) of brokers report increased demand specifically for limited company structures.
This change presents a significant opportunity for building societies. Many already recognise that borrowers with more complex needs are not being well served by the market. Over half (52%) of building societies identify complex borrowers as the most underserved group, and the same proportion also believe limited company BTL carries a comparatively lower risk profile.
The intent is there. But demand is moving faster than delivery.
A gap between opportunity and execution
While building societies clearly see the potential, many are finding it difficult to keep pace. Brokers are increasingly favouring lenders that can offer speed, flexibility and a broad specialist product range. Yet regulatory pressure and margin constraints continue to limit how quickly some building societies can adapt.
Our research highlights a mismatch between perception and reality. Almost half (45%) of building societies cite uncertainty around borrower demand as a barrier to innovation, despite brokers consistently reporting rising interest in specialist BTL. This disconnect risks slowing progress at a time when brokers are actively looking for lenders willing to support more complex cases.
Ambition is strong, but priorities are mixed
There is no shortage of ambition within the sector. Building societies report the strongest appetite for innovation among the lender types surveyed, with 83% saying their appetite for innovation is stronger than it was a year ago. Looking ahead, more than one in five plan to introduce a new specialist product over the next 12 months.
However, where innovation efforts are focused does not always align with broker priorities. While 21% of building societies are directing innovation towards flexible underwriting for complex cases, the same proportion are investing in broker tools and green products. Both are important areas, but not necessarily the ones brokers say will make the biggest difference in specialist BTL right now.
Speed of service, flexibility in underwriting and confidence in handling limited company structures remain the most pressing needs for brokers operating in this space.
Technology as a foundation for progress
One area where building societies are ahead of the curve is technology. Nearly a third (31%) already operate a dedicated origination platform for specialist lending, putting them ahead of challenger banks (21%) and specialist lenders (25%).
These platforms allow lenders to scale specialist products more efficiently, automate parts of the journey without losing underwriting control, and respond faster to broker demand. Used strategically, this puts building societies in a strong position to close the gap between ambition and execution.
Turning foundations into momentum
The specialist BTL market is evolving quickly, and brokers are clear about what they need from lenders. Building societies already have many of the right ingredients in place, including strong underwriting expertise, a genuine appetite for innovation and increasingly capable technology foundations.
What’s required now is sharper alignment with broker expectations. Faster decisioning, a wider specialist product set and greater confidence in supporting complex borrowers will be key to unlocking growth. Those that focus their efforts in these areas can reset broker perceptions and position themselves as long-term partners to professional landlords.
The opportunity is there. With the right focus, building societies can play a central role in the next phase of specialist buy-to-let lending — supporting brokers more effectively and capturing a greater share of a market that continues to expand.
You can download the full research report here.
