Professional landlords remain the principal source of buy-to-let borrowing and advice demand, even as unease grows over the impact of the Renters’ Rights Act.
One in three landlords sought new finance, refinancing or a product transfer in the past 12 months, according to Q4 2025 Landlord Trends research from Foundation Home Loans.
The research, conducted by Pegasus Insight on behalf of Foundation among 837 landlords during the final quarter of 2025, found that among those with buy-to-let borrowing in place, activity rises to six in 10.
The findings underline the continued reliance on brokers and specialist lenders as portfolios become more complex.
Landlords with borrowing now hold an average of 6.5 individual buy-to-let loans across more than two lender relationships. Total average borrowing stands at £714,000, with an average loan-to-value ratio of just under 50%.
Seven in 10 landlords used a broker to arrange their most recent mortgage, with most beginning the process at least three months before their existing deal ended. Foundation said this points to a cohort planning earlier, leaning heavily on advice and seeking specialist support to manage affordability and regulatory risk.
PORTFOLIO AND LIMITED COMPANY LANDLORDS LEAD ACTIVITY
The research highlights a marked divide between limited company and portfolio landlords and their smaller, individual counterparts. Limited company landlords hold significantly larger portfolios on average, are more likely to use buy-to-let finance and are more active in refinancing and rent reviews. They are also more engaged with regulatory change.
Awareness of the Renters’ Rights Act has increased to three-quarters of landlords, up 8% on the previous quarter. Awareness is highest among portfolio and limited company operators.
Around 75% believe the Act will have a negative impact on their own lettings activity, while 84% expect it to harm the private rented sector as a whole. Potential delays in the court system for regaining possession have overtaken energy efficiency requirements and tax changes as the single biggest concern.
Many landlords said provisions within the Renters’ Rights Act were influencing decisions around planned rent increases, alongside higher running costs and tax pressures.
PROFITS HOLD UP AS SALES INTENTIONS RISE
Despite the more cautious mood, 85% of landlords report that their lettings activity remains profitable, although this has eased slightly from the previous quarter. Average rental yields stand at 6.4%, down marginally from 6.6%, but still comparatively robust by historic standards.
However, forward-looking data suggests a degree of retrenchment. Nearly half of landlords plan to sell at least one property in the next 12 months, while just 5% intend to buy. Foundation characterised this as portfolio reshaping rather than wholesale withdrawal, with larger and more established landlords more likely to remain active.
Grant Hendry, director of sales at Foundation Home Loans, said: “While confidence has softened slightly, the underlying behaviour of professional landlords remains very clear.
“They’re still borrowing, refinancing and seeking advice in significant numbers, and they’re doing so earlier and more carefully than before.
“The complexity of portfolios, combined with regulatory change such as the Renters’ Rights Act, means brokers and specialist lenders have an increasingly important role to play.
“This is not a market stepping away from the PRS, or buy-to-let, or the finance needs required in this space, but it is one that is becoming more selective and more reliant on experience and support.
“Concerns around possession, court delays and future regulation are clearly shaping landlord behaviour, particularly for smaller operators. However, professional landlords continue to adapt their strategies and remain focused on long-term sustainability.
“That is where Foundation’s ability to deliver specialist lending, manual underwriting and strong broker relationships really matter.”
