"The latest data shows a market evolving rapidly towards greater sophistication"
- Grant Hendry - Foundation Home Loans
New Q3 2025 Landlord Trends data from Foundation Home Loans, produced with Pegasus Insight, shows that the UK’s landlord community is continuing to evolve, with more investors adopting specialist buy-to-let products and broadening their portfolios. The findings point to rising sophistication across the sector, supported by strong profitability and record rental yields.
The research shows that one in 10 landlords now holds a specialist buy-to-let product, including semi-commercial, HMO or non-standard property loans. One in seven expects to take out a specialist loan in the next year. Among landlords with more than 20 properties, more than one-fifth already use a specialist product.
Demand is strongest among portfolio and limited company landlords, who cite rates, fees and speed as the most important factors when selecting a lender. Foundation Home Loans notes that this reflects increased complexity in landlord operations and growing reliance on brokers to source tailored lending solutions.
The shift towards more structured portfolio management is also evident in the continuing rise of limited company ownership. The report shows that 22% of landlords now hold at least one property within a limited company, an increase of 2%, with 70% of their portfolios incorporated. Among those planning to buy in the next 12 months, 75% intend to do so through a limited company, marking a new high. The data suggests this is driven by new acquisitions rather than transfers of existing stock, indicating that the move is strategic and long-term.
Profitability remains strong across the sector. The share of landlords reporting a profit has reached 89%, the highest level in six years, while only 4% say they are making a loss. Average rental yields have increased to 6.6%, surpassing the previous 10-year record. The typical landlord portfolio is now valued at £1.77m and generates a gross annual income of £79,000. Foundation Home Loans notes that these figures highlight the resilience of professional landlords who have adapted their business models in response to current market conditions.
The study also identifies ongoing refinancing and remortgage activity. Among landlords with borrowing, 39% intend to remortgage or complete a product transfer in the coming year. Portfolio borrowers expect to refinance around 2.5 loans each. A growing number plan to release equity from existing properties to support new acquisitions, with this figure rising 10% this quarter to 33%. According to Foundation Home Loans, this shows greater use of capital recycling strategies among experienced landlords.
The research also offers insight into landlord sentiment following the Renters’ Rights Bill, which received Royal Assent at the end of October. Two-thirds of landlords were already aware of the bill before it passed, with awareness highest among limited company and portfolio landlords.
The findings show that 73% expect the legislation to negatively affect their lettings activity, and 81% believe it will make them more selective about tenants. However, half of the respondents still expect to remain profitable, and 44% agree that the legislation will help professionalise the sector. Foundation Home Loans states that this supports the view that experienced landlords continue to treat property investment as a long-term strategy.
“The latest data shows a market evolving rapidly towards greater sophistication,” commented Grant Hendry, director of sales at Foundation Home Loans. “For instance, specialist buy-to-let requirements mean one in seven landlords now plan to use a specialist loan in the coming year, and this trend is strongest among those already operating through limited companies."
"It reflects a sector that is thinking strategically about portfolio diversification, long-term value and the type of products they are going to require going forward. We’re also seeing record levels of profitability and yields, which demonstrates the strength and adaptability of professional landlords."
"These investors are more financially structured and increasingly reliant on brokers and specialist lenders to help them manage complex portfolios efficiently. With the Renters’ Rights Bill now enacted, landlords are facing another period of adjustment, but the majority remain confident in their ability to operate successfully. Brokers have a vital role in helping them navigate this new landscape and ensure their lending and property strategies remain aligned with the opportunities ahead.”
