The growth of specialist buy-to-let lending is gathering pace as professional landlords restructure their portfolios and look to diversify, according to new figures from Foundation Home Loans.

Its latest Landlord Trends report for Q3 2025, compiled by Pegasus Insight, shows a steady shift towards more complex and bespoke forms of borrowing. One in 10 landlords now holds a specialist buy-to-let product, including loans for semi-commercial assets, HMOs or non-standard properties.

One in seven expects to take out such a loan within the next year.

Among landlords with more than 20 properties, that proportion rises sharply, with more than one-fifth already using specialist products. Foundation said this reflects the increased complexity of larger portfolios and the growing professionalisation of the landlord community.

Those appetite levels are most pronounced among portfolio and limited company landlords, who cite rates, fees and speed of delivery as the most critical factors in lender selection. Foundation said the data illustrates a sector increasingly reliant on tailored solutions and broker expertise.

The move towards more structured ownership is also evident in the continued rise of limited company incorporation. The research shows that 22% of landlords now hold at least one property within a limited company, with seven in 10 of their properties incorporated. Of those planning to buy in the next 12 months, three quarters intend to purchase through a limited company, marking a new high.

Foundation said these figures indicate that landlords are incorporating new acquisitions rather than transferring older stock, underlining a deliberate, strategic shift.

Profitability remains robust. Almost nine in 10 landlords report making a profit, the highest level for six years, with only a small minority loss-making. Average rental yields have reached 6.6%, exceeding the previous decade-long record, while the average landlord portfolio is valued at £1.77m and generates £79,000 in gross annual income.

Foundation said the numbers demonstrate the resilience of professional landlords who have adjusted their business models in response to changing lending and regulatory conditions.

The report also highlights sustained demand for remortgaging and refinancing. Thirty-nine per cent of landlords with borrowing intend to remortgage or complete a product transfer within the next year. Among portfolio landlords, that rises significantly, with expectations of refinancing around two and a half loans each. More landlords are also seeking to release equity to fund further acquisitions, up to 33% this quarter.

Foundation said this underscores the growing use of capital recycling as landlords look to expand or rebalance their holdings.

The research arrives shortly after the Renters’ Rights Bill received Royal Assent at the end of October. Two-thirds of landlords were aware of the bill before it passed, with awareness higher among limited company and portfolio operators. Nearly three quarters expect the legislation to have a negative impact on their lettings activity and more than four fifths say it will make them more selective about tenants.

Even so, half still believe they will remain profitable and 44% agree the measures could support greater professionalisation of the sector. Foundation said this shows that experienced landlords continue to view property investment as a long-term business.

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.”