"While confidence has softened slightly, the underlying behaviour of professional landlords remains very clear. They’re still borrowing, refinancing and seeking advice in significant numbers, and they’re doing so earlier and more carefully than before."
- Grant Hendry - Foundation Home Loans
Professional landlords continue to account for most buy-to-let borrowing and advice demand, although confidence has dipped slightly amid concerns about how changes under the Renters’ Rights Act will affect the sector, according to the latest landlord trends research from Foundation.
The Q4 2025 study, carried out by Pegasus Insight among 837 landlords, found that one in three sought new finance, refinancing, or a product transfer during the past 12 months. Among landlords with buy-to-let borrowing already in place, this figure rose to six in ten, highlighting the growing reliance on brokers and specialist lenders as portfolios become more complex.
Landlords with borrowing now hold an average of 6.5 individual buy-to-let loans spread across more than two lender relationships. Their total average borrowing stands at £714,000, with an average loan-to-value ratio just under 50%.
Seven in ten landlords used a broker to arrange their most recent mortgage, and most began the process at least three months before their existing deal ended. Foundation said this points to earlier planning, heavier use of advice, and a stronger focus on managing affordability and risk in a shifting market.
The research also shows clear differences between landlord types:
limited company and portfolio landlords hold much larger portfolios on average
they are more likely to use buy-to-let finance and refinance more frequently
they are more engaged with regulatory change and rent reviews than smaller individual landlords
Awareness of the Renters’ Rights Act has moved to the centre of landlord decision-making. Three-quarters of landlords are now aware of the legislation, up 8% on the previous quarter, with the highest awareness among portfolio and limited company landlords. Around 75% believe the Act will have a negative impact on their own lettings activity, while 84% expect it to harm the private rental sector overall.
Concerns about delays in the court system when regaining possession have become the single biggest issue for landlords, overtaking energy efficiency requirements and tax changes. Many respondents also said provisions of the Renters’ Rights Act are influencing decisions on planned rent increases, alongside rising running costs and tax pressure.
Despite these pressures, profitability remains relatively strong. Some 85% of landlords still report making a profit from their lettings activity, although this has eased slightly compared with the previous quarter. Average rental yields now stand at 6.4%, down from 6.6%, but still robust by historical standards.
Looking ahead, intentions suggest a more cautious stance. Nearly half of landlords plan to sell at least one property in the next 12 months, while only 5% intend to buy. Foundation said this reflects portfolio reshaping rather than a rush to exit, with larger and more established landlords far more likely to stay active and engaged.
“While confidence has softened slightly, the underlying behaviour of professional landlords remains very clear,” said Grant Hendry, director of sales at Foundation. “They’re still borrowing, refinancing and seeking advice in significant numbers, and they’re doing so earlier and more carefully than before."
“The complexity of portfolios, combined with regulatory change such as the Renters’ Rights Act, means brokers and specialist lenders have an increasingly important role to play. This is not a market stepping away from the PRS, or buy-to-let, or the finance needs required in this space, but it is one that is becoming more selective and more reliant on experience and support.
“Concerns around possession, court delays and future regulation are clearly shaping landlord behaviour, particularly for smaller operators. However, professional landlords continue to adapt their strategies and remain focused on long-term sustainability. That is where Foundation’s ability to deliver specialist lending, manual underwriting and strong broker relationships really matter.”
