Portfolio compositions, borrower behaviours, and property types continue to evolve, according to the latest Q1 2025 Landlord Trends research.
The data, conducted by Pegasus Insight on behalf of Foundation Home Loans, found 60% of landlords intending to buy a property in the next 12 months plan to do so within a limited company structure.
Over the past five years, the proportion of properties held within limited companies has risen sharply from 36% in Q1 2020 to 66% in Q1 2025.
This shift is also reflected in portfolio size, with landlords who have at least one property held within a limited company owning, on average, 14.6 properties, compared to 5.2 among those whose entire portfolio is held in their personal name.
A growing number of landlords continue to embrace diversification strategies through specialist property investment.
The research finds one-in-five landlords now owning at least one HMO property, rising to one-in-four among portfolio landlord borrowers, while 6% now hold at least one holiday let.
The average number of HMOs held is 3.6, while those with holiday lets own 1.6 on average.
Among larger landlords — those with 11 or more properties — 29% have an HMO, and 12% have a holiday let within their portfolio.
The research also confirms the strong performance of landlord portfolios, with the average rental yield remaining at 6.3%.
Overall, 84% of landlords are making a profit from their lettings activity, with 17% reporting a large profit and 67% a small profit.
For portfolio landlords with four or more BTL mortgages, 80% remain in profit despite higher borrowing and expenditure levels.
Remortgage activity is expected to remain strong through 2025, with 38% of landlords with BTL borrowing intending to remortgage or carry out a product transfer in the next 12 months.
Portfolio landlords expect to refinance three mortgages on average, and three-quarters of landlords say they will opt for a fixed rate.
According to the data, landlords are concerned about the reform of possession laws, as well as future EPC requirements.
The cost of compliance, uncertainty around timescales, and the perceived disconnect between regulation and support for the supply side of the PRS were the main worries highlighted.
Grant Hendry, director of sales at Foundation Home Loans (pictured above), commented: “The story behind this quarter’s data is one of continuing evolution and resilience within the landlord community.
“Incorporation is no longer a niche strategy, it’s a mainstream structural approach, especially for landlords who are expanding or refinancing.
“Specialist property investment is also a major theme, and it is interesting to see that larger portfolio landlords are targeting areas such as holiday lets, more than doubling their holdings of these properties.
“At Foundation Home Loans, we’ve certainly seen growth in holiday let mortgage demand.
“Whether it’s holiday lets, HMOs or multi-unit blocks, landlords are clearly broadening their portfolios in ways that demands deeper product expertise and flexible criteria.
“It’s encouraging to see landlord profitability remaining strong, with rental yields holding up exceptionally well given the broader economic context.
“The remortgage opportunity this year remains very real; 38% of landlords with borrowing expect to refinance, many with multiple mortgages to review.”
