Professional landlords are driving a clear shift towards specialist buy-to-let and greater portfolio diversification, according to Foundation Home Loans’ Q3 2025 Landlord Trends research, conducted by Pegasus Insight.
The findings show that one in 10 landlords now hold a specialist buy-to-let product, such as semi-commercial, HMO or non-standard property loans, while one in seven expect to take a specialist loan within the next 12 months.
Among larger landlords with more than 20 properties, over one-fifth already hold a specialist product, underlining the increasing sophistication of the sector.
Appetite is strongest among portfolio and limited company landlords, with rates, fees and speed highlighted as the leading factors when choosing a lender.
Foundation Home Loans said this reflects a landlord base that is becoming more professional, more structured in its decision-making, and increasingly reliant on brokers and specialist lenders for complex borrowing needs.
The trend towards structured portfolio management is further supported by the continued growth of limited company ownership.
The research shows 22% of landlords now hold at least one property in a limited company, a rise of 2%, with 70% of those portfolios incorporated.
Among landlords intending to buy in the next 12 months, three quarters plan to do so through a limited company, the highest level recorded, driven primarily by new acquisitions rather than the transfer of existing stock.
Profitability and yields across the sector are at their strongest levels in years. Landlord profitability has reached a six-year high, with 89% reporting a profit from their lettings activity and only 4% loss-making.
Typical rental yields have increased to 6.6%, breaking the previous 10-year record. The average landlord portfolio is now valued at £1.77m and generates £79,000 in gross annual income.
Foundation Home Loans said these figures demonstrate the resilience and financial strength of professional landlords who have adjusted their strategies to changing market conditions.
The research also highlights a sustained remortgage and refinancing opportunity across the sector.
Thirty-nine per cent of landlords with borrowing intend to remortgage or carry out a product transfer in the next year, with portfolio landlords expecting to refinance an average of 2.5 loans.
A rising proportion of landlords are also choosing to release equity to fund new purchases, up 10% this quarter to 33%, indicating broader use of capital recycling strategies to expand or rebalance portfolios.
Landlord sentiment towards new regulation remains cautious following the Renters’ Rights Bill receiving Royal Assent at the end of October.
Two-thirds of landlords were aware of the bill before its passage, with awareness highest among limited company and portfolio operators.
Seventy-three per cent expect it to negatively affect their lettings activity, and 81% say it will make them more selective about who they let to. Even so, half of landlords still believe they will maintain profitability, and 44% agree the legislation will help professionalise the sector.
Grant Hendry, director of sales at Foundation Home Loans, said: “The latest data shows a market evolving rapidly towards greater sophistication.
“For instance, specialist buy-to-let requirements means 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.”
