The continued evolution of the UK landlord community is being driven by a marked shift towards specialist buy-to-let (BTL) and greater portfolio diversification, Foundation Home Loans reveals.
Foundation Home Loans’ latest Landlord Trends survey for Q3 2025, conducted by Pegasus Insight, shows that one in ten landlords now own a specialist BTL product, while one in seven expect to take out a specialist loan within the next twelve months.
However, for landlords with more than twenty properties, this rises to more than a fifth with a specialized product.
Appetite is strongest among portfolio and corporate landlords, with rates, fees and speed cited as the most important factors when choosing a lender.
Foundation Home Loans says this reflects the growing complexity and professionalisation of the landlord base, and increased demand for specialist, bespoke lending solutions delivered through brokers.
This shift towards more structured and refined portfolio management is also reflected in the continued growth in the number of private companies.
The research shows that 22% of landlords now own at least one property within a limited company, which has increased by 2%, taking up 70% of their portfolio.
Of those planning to buy in the next twelve months, 75% plan to do so through a limited company, which is a new record.
The data shows this is being driven by new acquisitions rather than landlords transferring existing shares, underscoring the strategic nature of the shift.
Profitability and returns performance across the sector also remains strong. Landlord profitability has reached a six-year high, with 89% of landlords reporting a profit from their rental activities and only 4% currently making a loss.
Average rental yields have risen to 6.6%, surpassing the previous ten-year record, while the typical landlord portfolio is now worth £1.77 million and generates a gross annual income of £79,000.
Foundation Home Loans says these figures highlight the resilience and financial strength of professional landlords who have adapted their business models to changing circumstances.
The research also points to a sustainable remortgage and refinancing option. 39% of landlords with loans plan to remortgage or carry out a product transfer in the next twelve months, a figure that rises significantly among portfolio borrowers who expect to refinance around 2.5 loans each.
A growing proportion also want to release shares from existing real estate to finance new purchases, up from 10% this quarter to 33%.
Foundation Home Loans says this reflects the increasing use of capital recycling strategies by professional landlords looking to expand or rebalance their assets.
In addition to structural and financial trends, the latest research provides up-to-date insight into landlord sentiment towards post-crisis regulation Tenants’ Rights Act received royal assent at the end of October.
Two-thirds of landlords were aware of the bill before it was passed, with awareness peaking among corporations and portfolio landlords.
Of respondents, 73% expect this will have a negative impact on their rental activities and 81% say it will make them more selective about who they rent to.
However, half of landlords believe they can still make a profit, and 44% agree that the legislation will ultimately contribute to the professionalization of the sector.
Foundation Home Loans emphasizes that this reinforces the view that the most experienced operators are adapting and continue to view property investment as a long-term strategy.
Grant Hendry, sales director at Foundation Home Loans, said: “The latest data shows a market rapidly moving towards greater sophistication. For example, the demands of specialist buy-to-let mean that one in seven landlords now plan to use a specialist loan in the next year, and this trend is strongest among landlords already operating through limited companies.”
“It reflects an industry that is thinking strategically about portfolio diversification, long-term value and the types of products they will need in the future.”
“We are also seeing record levels of profitability and returns, demonstrating the strength and adaptability of professional landlords. These investors are better financially structured and increasingly reliant on brokers and specialist lenders to help them manage complex portfolios efficiently.”
“With the Renters’ Rights Bill now in effect, landlords face another period of adjustment, but the majority remain confident in their ability to operate successfully. Brokers have a critical role to play in navigating this new landscape and ensuring their lending and real estate strategies remain aligned with the opportunities ahead.”