The continued evolution of the UK’s landlord community is being driven by a clear shift towards specialist buy-to-let (BTL) and greater portfolio diversification, Foundation Home Loans reveals.
The latest Q3 2025 Landlord Trends research from Foundation Home Loans, conducted by Pegasus Insight, found that one in 10 landlords now hold a specialist BTL product, while one in seven expect to take a specialist loan within the next 12 months.
However, for landlords with 20-plus properties, this rises to over one-fifth holding a specialist product.
Appetite is strongest among portfolio and limited company 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 the increased demand for specialist tailored lending solutions delivered via brokers.
That shift towards more structured and sophisticated portfolio management is also evident in the continued growth of limited company ownership.
The research shows 22% of landlords now hold at least one property within a limited company, which has increased by 2%, with 70% of their portfolio incorporated.
Among those intending to buy in the next 12 months, 75% plan to do so through a limited company, which is a new record high.
The data suggests this is being driven by new acquisitions rather than landlords transferring existing stock, underlining the strategic nature of the shift.
Profitability and yield performance across the sector also remain strong. Landlord profitability has reached a six-year high, with 89% of landlords reporting a profit from their lettings activity and only 4% currently loss-making.
Average rental yields have climbed to 6.6%, beating the previous 10-year record, while the typical landlord portfolio is now worth £1.77m and generates a gross annual income of £79,000.
Foundation Home Loans stated these figures highlight the resilience and financial strength of professional landlords who have adapted their business models to changing conditions.
The research also points to a sustained remortgage and refinancing opportunity. 39% of landlords with borrowing intend to remortgage or carry out a product transfer in the next 12 months, a figure that rises significantly among portfolio borrowers who expect to refinance around 2.5 loans each.
A growing proportion are also looking to release equity from existing properties to fund new purchases, up 10% this quarter to 33%.
Foundation Home Loans says this reflects the increasing use of capital recycling strategies by professional landlords seeking to expand or rebalance their holdings.
In addition to structural and financial trends, the latest research provides timely insight into landlord sentiment towards regulation following the Renters’ Rights Bill receiving Royal Assent at the end of October.
Two-thirds of landlords were already aware of the bill prior to its passage, with awareness peaking among limited company and portfolio landlords.
Of respondents, 73% expect it to have a negative impact on their lettings activity and 81% say it will make them more selective about who they let to.
However, half of landlords still believe they will be able to make a profit, and 44% agree the legislation will ultimately help professionalise the sector.
Foundation Home Loans highlights that this reinforces the view that the most experienced operators are adapting and continuing to view property investment as a long-term strategy.
Foundation Home Loans director of sales Grant Hendry says: “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.”
