The idea of a truly straightforward buy-to-let case now feels increasingly distant. As portfolios grow in size and complexity and borrowing needs evolve alongside them, what was once a relatively familiar process has become far less predictable.
After all, it’s no longer unusual to see landlords holding a mix of property types across different regions, often with multiple funding arrangements in place, each shaped by specific income, tax or portfolio considerations.
This shift hasn’t happened overnight, nor is it driven by landlords seeking complexity for its own sake. Instead, it reflects a more considered response to changing market conditions, where income resilience, asset performance and longer-term planning now carry greater weight.
As a result, brokers are seeing fewer straightforward buy-to-let cases that sit neatly within narrow lending frameworks, and far more that require judgement, context and a broader view of risk.
That doesn’t mean solutions or support are lacking though, they are very much available, readily accessible and competitively priced.
HMO POPULARITY
One of the clearest signs of this change is the growing presence of HMOs within landlord portfolios. The latest Pegasus Insight Landlord Trends data for Q4 2025 shows that one in five landlords now holds at least one HMO, with ownership becoming more common as portfolio size increases.
Yield remains a central consideration within this conversation. Average achieved yields across all buy-to-let property types currently sit at 6.4%, which in itself reflects a relatively stable position.
However, HMOs continue to sit above that level, delivering an average yield of 7.3%. This is a substantial difference that can influence how new purchases are structured, how existing borrowing is refinanced and how risk is spread across assets.
Portfolio composition supports this, with the Q4 data suggesting that terraced houses appear in around three in five landlord portfolios, while semi-detached properties and self-contained flats are each held by close to half of landlords.
Regional patterns also play a part, with terraced stock most prevalent in Wales and Yorkshire, while flats feature more heavily across London and the South East.
Many of these property types lend themselves naturally to shared living, particularly in areas with sustained tenant demand. In practice, this often means landlords adapting existing stock over time rather than making abrupt changes.
A former single let may be converted to shared use, or a new purchase may be assessed not just for its immediate return but for its longer-term potential. Gradually, portfolios become more varied, and cases become harder to categorise.
COMPLEXITY & BUREACRACY
Of course, HMOs introduce added layers, with licensing, planning use, fire safety and room size requirements varying by local authority. Crucially, lender criteria in these areas is far from consistent.
Maximum occupant numbers, acceptable property types and minimum experience levels can vary widely. The same case may be viewed very differently depending on how a lender assesses risk and applies policy.
This is why applying a rigid, checklist-driven approach increasingly falls short. Many cases do not fail because they are unsound, but because they don’t fit neatly into inflexible rules.
As a result, experience and a common sense lending approach has become more important than ever. Brokers now need lenders that can assess nuance rather than rely solely on narrow definitions.
That means understanding how a property is used in practice, how a landlord’s experience has been built across different structures, and how income performs at a portfolio level rather than on a single property in isolation.
MARKET REALISM
This doesn’t signal a move away from responsible lending. If anything, it reflects a more realistic view of the modern buy-to-let market. Landlord portfolios are no longer uniform, and borrower profiles rarely follow a single path.
Cases are now shaped by a combination of property mix, regional demand, tax position and long-term intent, all of which need to be weighed together.
Straightforward buy-to-let hasn’t disappeared entirely, but it’s no longer the default. In its place is a market defined by variation, where successful outcomes depend on the ability to understand context and apply judgement. And this is where specialist lenders continue to excel and add real value.
