Despite a raft of regulatory and tax headwinds over the past two years, they are proving their ability to navigate the red tape in order to build their property portfolios.

In fact, according to the latest industry data, the sector is more popular than ever, with the number of buy-to-let investors in the UK hitting a record high of 2.5 million in the latest tax year. That’s 5% higher than the previous 12 months and 27% more than we saw five years ago.

Of course, there are a number of market dynamics driving this positive momentum. UK property is still seen as a reliable and stable investment – despite rising costs for landlords – and it consistently delivers long-term returns that far outstrip the equity markets and other investable assets.

Fundamentally, this is because demand for housing continues to significantly exceed supply, ensuring property prices keep rising, while the rental market remains buoyant. Clearly, this presents a significant opportunity for buy-to-let investors, who play a vital role in ensuring there is enough quality rental accommodation available in the private sector to meet this growing demand.

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At the same time, faced with more red tape than ever before, investors are becoming increasingly savvy in protecting their income and returns, adapting their portfolios and business models to take into account the new rules of engagement.

For example, many are now purchasing rental properties with commercial mortgages through limited companies, while others are finding better value by investing in more complex and less ‘in demand’ property types – such as houses in multiple occupation (HMOs) and semi-commercial properties. These are often found in cheaper ‘up-and-coming’ rental hotspots outside the most popular – and expensive – prime postcodes.

But, with this rise in complex purchases alongside more robust underwriting checks for portfolio landlords applying for new finance, many property investors are still finding that mainstream lenders are failing to keep up with the pace of change in the industry, and are often reluctant or unable to provide the funding they need, when they need it.

We’re certainly hearing this from our customer base, who are on the lookout for more innovative buy-to-let and auction finance products that work in today’s far stricter regulatory environment.

What is certain, though, is that, despite the challenges it has faced over recent years, the UK buy-to-let sector is still alive and kicking, as landlords and property investors prove they aren’t afraid to adapt and evolve with the times and are finding lenders to suit their changing needs.