Professional landlords remain the engine room of buy-to-let borrowing, despite softer confidence levels as the Renters’ Rights Act looms.
The latest Q4 2025 Landlord Trends research from Foundation Home Loans, conducted by Pegasus Insight among 837 landlords, shows one in three sought new finance, refinancing or a product transfer in the past 12 months. Among those with borrowing in place, that figure rises to six in ten.
Landlords with finance now hold an average of 6.5 individual buy-to-let loans across more than two lenders, with total borrowing averaging £714,000 and an average LTV of just under 50%. Seven in ten used a broker for their most recent mortgage and most began the process at least three months before their deal ended.
Limited company and portfolio landlords continue to outpace smaller operators, holding larger portfolios, refinancing more actively and showing greater engagement with regulatory change.
RENTERS’ RIGHTS ACT
Awareness of the Renters’ Rights Act has risen to three-quarters of landlords, up 8% quarter-on-quarter. Around 75% believe it will negatively impact their own lettings activity, while 84% expect a negative effect on the wider PRS.
Concerns over court delays in regaining possession now rank as the biggest issue, overtaking tax and EPC requirements.
Despite this, 85% still report making a profit, with average yields at 6.4%, only slightly down on the previous quarter.
LONG-TERM SUSTAINABILITY
Grant Hendry, Director of Sales at Foundation Home Loans, says: “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.
“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.”
