One of the most common misconceptions that people have about the buy-to-let market is that landlords are a single, uniform group. The reality is that the sector has always been made up of a wide range of different borrower types, each of whom have different levels of experience, capital, risk-appetite and ambition.
From all I’m seeing, these differences are becoming more pronounced, and landlords’ profiles are as diverse as ever. For brokers and lenders, it’s important that we recognise this shift and are well positioned to cater to buy-to-let clients today and into the future.
THE FIRST-TIME LANDLORD IS BECOMING MORE STRATEGIC
First-time landlords offer a good example of how the buy-to-let market is evolving. Historically, they were often someone leveraging existing equity to invest in an asset, attracted by low borrowing costs and relatively straightforward regulatory requirements, making the process more manageable for people with full-time jobs and other commitments.
But entering the buy-to-let market today requires greater financial commitment due to higher property values and higher borrowing costs, and therefore more careful planning around whether to manage a property under personal ownership or through a limited company structure.
Stamp Duty surcharges on investment properties remain a significant upfront cost, while lenders’ stress rates are now higher due to the hike in interest rates between 2021 and 2023.
Moreover, compliance obligations, licensing requirements and energy efficiency standards also require more attention and capital expenditure.
As a result, the casual, part-time investor has become a less common feature of the rental market. Those stepping into buy-to-let in 2026 tend to be more deliberate in their approach, with clearer expectations around yield, stress testing and long-term returns.
They also take a much more strategic approach to property selection, with many looking to areas that are less traditionally thought of as buy-to-let hotspots in search of a productive balance between house prices, rental growth and affordability.
This means that many are engaging brokers at an earlier stage to understand how best to structure their purchase, and it’s becoming increasingly typical for limited company ownership to be considered from the outset.
It demonstrates that first-time landlords have become more strategically minded and informed on the opportunities within the market.
ACCIDENTAL LANDLORDS FACE A PIVOTAL YEAR
Connected to first-time landlords are ‘accidental landlords’, many of whom retain a former residential property due to circumstance rather than intention. They might have been left it by a parent, for example, and choose to rent it out rather than sell.
But the cumulative effect of regulatory change and tax treatment has made the decision to remain in the sector more finely balanced. Holding a single rental property is no longer a passive exercise, and margins can be tight where borrowing costs are elevated or rents cannot rise indefinitely.
With the Renters’ Rights Act due to come into effect from May and Energy Performance Certificate reforms potentially on the horizon, it wouldn’t be a surprise to see some accidental landlords exit the market.
In many places, capital growth has already been realised, and the administrative burden feels disproportionate to the return.
However, we could also see some of them take the opportunity to professionalise. As such, there will be many potentially less experienced investors seeking to refinance, restructure ownership and invest in improvements to enhance their property’s quality.
Their success will therefore be based on whether brokers and lenders can provide finance that matches their needs and goals.
PROFESSIONAL LANDLORDS ARE LOOKING TO OPTIMISE
AT the other end of the spectrum sit professional and portfolio landlords, whose presence in the market, despite perennial speculation, remains significant.
In many respects, the higher barriers to entry have reinforced their position. Borrowers with established equity, diversified portfolios and experience navigating regulatory change are typically better equipped to absorb cost pressures and adjust strategy when required.
That said, we’re seeing that these landlords have undergone a minor mindset shift. During the ultra-low rate 2010s, acquisitions were central to landlords’ growth strategy. But with rates higher in 2026 than they were, this group appears to be less focused on aggressive expansion and more on optimisation and consolidation.
It’s why refinancing has become such a major part of today’s lending volumes, with landlords releasing equity to rebalance portfolios and selectively acquiring assets that meet defined yield thresholds.
Diversification across property types, including HMOs and multi-unit blocks where demand is robust, is also part of the conversation.
LIMITED COMPANIES INCREASINGLY MAINSTREAM
Underlying much of this evolution is the continued normalisation of limited company borrowing. In fact, there were a record 66,587 buy-to-let companies set up in 2025, a 363% increase over the past decade.
While incorporation is not chosen by every investor and must sit alongside specialist tax advice, it has become firmly embedded within the buy-to-let space. For many professional landlords, and even for some new ones, purchasing through a special purpose vehicle is fast becoming a standard consideration.
PREPARING FOR MORE COMPLEX BORROWER PROFILES
What this all suggests is that lenders and brokers need to prepare for a more nuanced client base in which complexity is inherent. Rather than being defined by a simple contraction or expansion in landlord numbers, the nature of who’s participating and how they’re operating in the market will change.
For brokers, this has practical implications. The conversations required with a first-time limited company investor differ markedly from those needed by a long-standing portfolio client seeking to restructure or diversify. Recognising those distinctions and working with lenders capable of accommodating varied borrower profiles will be essential.
Among lenders, the focus must remain on supporting borrower diversity and ensuring that brokers have as many tools as possible for dealing with their clients’ unique needs and goals.
Only then will the finance markets be able to keep pace with the ever-changing nature of the buy-to-let sector.
Roger Morris is group distribution director at Chetwood Bank for CHL Mortgages and ModaMortgages
