Professional landlords continue to drive borrowing and advice demand - Foundation Landlord Trends

16 February 2026

16 February 2026 - Professional landlords remain the main drivers of buy to let borrowing and advice demand, but confidence has softened slightly amid concerns around how the Renters’ Rights Act changes will land, according to the latest Q4 2025 Landlord Trends research from Foundation.

The research, conducted by Pegasus Insight on behalf of Foundation amongst 837 landlords during Q4 2025, shows one in three landlords sought new finance, refinancing or a product transfer in the last 12 months.

Among landlords with buy to let borrowing in place, this rises to six in ten, underlining the continued importance of brokers and specialist lenders in supporting increasingly complex portfolios.

On average, landlords with borrowing now hold 6.5 individual buy to let loans across more than two lender relationships, with total average borrowing standing at £714,000 and an average LTV of just under 50%.

Seven in ten landlords used a broker to arrange their most recent mortgage, with most starting the process at least three months ahead of their deal ending.

Foundation said this appears to highlight a landlord borrower base that is planning earlier, relying heavily on advice, and seeking specialist support to manage risk and affordability in a changing market.

The research also shows limited company and portfolio landlords continue to behave very differently from smaller, individual landlords. Limited company landlords hold far larger portfolios on average, are more likely to use buy to let finance, and are more active in refinancing and rent reviews. They’re also significantly more engaged with regulatory change.

Concerns around the Renters’ Rights Act now sit firmly at the centre of landlord decision-making. Three-quarters of landlords are aware of the legislation, an increase of 8% on the previous quarter, with awareness highest among portfolio and limited company landlords. Around 75% believe the Act will have a negative impact on their own lettings activity, while 84% expect it to have a negative impact on the private rental sector as a whole.

Potential delays in the court system for regaining possession have become the single biggest concern for landlords, overtaking energy efficiency requirements and tax changes. Many landlords also said elements of the Renters’ Rights Act were influencing decisions on planned rent increases, alongside higher running costs and tax pressure.

Despite this, profitability across the sector remains resilient. 85% of landlords still report making a profit from their lettings activity, although this has eased slightly from the previous quarter. Average rental yields now stand at 6.4%, down marginally from 6.6% in the last quarter, but still strong by historic standards.

However, future intentions data points to a potentially more cautious outlook. Nearly half of landlords now plan to sell at least one property in the next 12 months, while just 5% intend to buy. Foundation said this reflects portfolio reshaping rather than panic, with larger and more established landlords far more likely to remain active and engaged.

Grant Hendry, Director of Sales at Foundation Home Loans, 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.

“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.”

Learn more: www.foundationlending.co.uk