## Professional landlords remain central to buy-to-let borrowing

Professional landlords continue to be the primary drivers of buy-to-let borrowing and mortgage advice activity in the UK, according to the latest research from Foundation Home Loans. Their ongoing engagement in refinancing, raising capital, and restructuring debt highlights a resilient sector, even as confidence softens amid regulatory pressures.

Foundation’s recent Landlord Trends study reveals that one in three landlords arranged new finance, refinancing, or product transfers within the past year. This activity persists despite growing concerns about the impact of the forthcoming Renters’ Rights Act on day-to-day lettings.

Grant Hendry, Foundation’s director of sales, commented: “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.” He added that the market is not retreating from the private rented sector (PRS) or buy to let but is becoming more selective and reliant on experience and support. “Concerns around possession, court delays and future regulation are clearly shaping landlord behaviour, particularly for smaller operators.”

## Increasing reliance on brokers and complex finance structures

The survey highlights a growing dependence on brokers and specialist lenders as landlords’ portfolios become more complex. Among landlords already carrying buy-to-let borrowing, six in ten have arranged fresh funding, refinanced existing debt, or completed product transfers in the past year.

Leveraged landlords now typically hold an average of 6.5 separate loans across more than two lending institutions, with combined borrowing averaging £714,000. Despite this scale, gearing remains relatively conservative at just under 50% loan to value. Notably, 70% of landlords used a broker for their latest mortgage, often initiating discussions at least three months before their current deal expired.

For landlords, this means that professional advice and early planning are increasingly important to navigate the evolving lending landscape and optimise finance arrangements.

## Limited company landlords more active amid legislative awareness

Limited company and portfolio landlords are more active in refinancing, rent reviews, and utilising debt compared to individual investors. They also demonstrate higher awareness of legislative reforms, particularly the Renters’ Rights Act.

Awareness of the Act has risen sharply, with three quarters of respondents familiar with the proposals—an 8% increase from the previous quarter. Multi-property and incorporated landlords are the most knowledgeable. Around 75% believe the legislation will negatively affect their own lettings, while 84% expect broader adverse impacts across the private rented sector.

This heightened awareness suggests that incorporated landlords may be adjusting strategies more proactively in response to regulatory changes.

## Concerns over possession and court delays top landlord worries

The survey identifies court capacity for possession proceedings as the leading concern for landlords, surpassing energy efficiency regulations and tax exposure. Many landlords are now carefully weighing planned rent increases against the provisions of the Renters’ Rights Act, alongside rising operating costs and fiscal pressures.

This shift in concern underscores the practical challenges landlords face in managing tenancies and enforcing possession in a changing legal environment.

## Profitability remains strong despite market pressures

Despite these challenges, 85% of landlords reported turning a profit, only slightly down from previous reports. Average rental yields stand at 6.4%, a modest decline from 6.6%, but remain robust historically.

However, nearly half of landlords intend to sell at least one property within the next 12 months, while only 5% plan to purchase new assets. Foundation interprets this trend as balance-sheet restructuring, with larger landlords continuing to acquire attractive opportunities.

For landlords, this indicates a cautious but ongoing engagement with the market, balancing portfolio optimisation with regulatory and financial pressures.