According to Foundation Home Loans’ Q3 2025 Landlord Trends research, conducted by Pegasus Insight, one in 10 landlords hold a specialist BTL product, such as a semi-commercial property, house of multiple occupation (HMO) or non-standard property loan.
One in seven said they expect to take out a specialist loan in the next year, with this rising to one in five for portfolio landlords with 20 or more properties.
Foundation Home Loans said BTL appetite was strongest with portfolio and limited company landlords, with rates, fees and speed singled out as the most important factors in choosing a lender.
Limited company ownership is continuing to grow, with 22% of landlords holding at least one property within a limited company, a rise of 2%.
Three-quarters of landlords intending to buy in the coming year are planning to do so via a limited company – a record high, the lender said.
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The report said this is being driven by “new acquisitions rather than landlords transferring existing stock, underlining the strategic nature of the shift”.
Landlord profitability is at a six-year high, the research showed, with 89% of landlords reporting a profit and only 4% loss-making.
Average rental yields have climbed to 6.6%, surpassing the previous 10-year record. The typical landlord portfolio is valued at £1.77m with a gross annual income of £79,000.
From a remortgage and refinance perspective, 39% of landlords with borrowing intend to remortgage or carry out a product transfer in the next 12 months, with this rising among portfolio borrowers, who expect to refinance around two-and-a-half loans each.
A growing number are also looking to release equity from existing properties to fund new purchases, up 10% this quarter to 33%.
Foundation Home Loans said this shows the “increasing use of capital recycling strategies by professional landlords seeking to expand or rebalance their holdings”.
The Renters’ Rights Act – which became law at the end of October, with the implementation timeline to kick off in May next year – has had a mixed response from landlords, with nearly three-quarters saying they think it will have a negative impact on lettings activity.
Around 81% said it would make them more selective about who they let to, which is possibly due to the abolition of Section 21 eviction notices, among other measures.
However, half of landlords think they will be able to make a profit and 44% said they think the legislation would help professionalise the sector.
Grant Hendry (pictured), 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.”
