The increasing professionalisation of the private rented sector (PRS) and buy-to-let (BTL) market is highlighting the need for lending solutions suited to specialist and portfolio structures.
The most recent Landlord Trends research from Pegasus Insight showed that the average size of a landlord’s portfolio has increased to 7.3 properties, pointing to a trend of larger-scale investors who were potentially more business-minded.
Over a fifth – 21% – of landlords described themselves as full-time or self-employed landlords, up from 17% at the end of last year.
Pegasus Insight said the findings suggested that landlords were treating their investments as a business, amid changing regulatory and tax policies.
Limited company landlords appear to be driving this trend, with the average portfolio standing at 15.3 properties, up from 12.8 at the end of 2025. Further, around two-thirds of their holdings are within a corporate structure.
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
Sponsored by Aldermore
Landlords in need of refinance options
Refinancing activity is also driving the demand for finance among landlords, with around 40% expecting to remortgage next year, rising to 56% among those with at least four BTL mortgages. Portfolio landlord borrowers are nearly twice as likely as smaller landlords to be actively seeking refinancing opportunities.
Mark Long, founder and managing director of Pegasus Insight, said: “The PRS is becoming increasingly professional and sophisticated. The image of the landlord with one or two properties operating on the side of another career no longer tells the full story.
“The PRS is undergoing a gradual but important structural shift. We are seeing fewer landlords treating property as a side line investment and more operating as professional businesses with larger, more sophisticated portfolios.”
Long said this had “significant implications for the mortgage market”, adding: “Larger landlords tend to have more complex borrowing needs, make greater use of limited company structures and are more likely to require specialist lending solutions and refinancing support.
“At the same time, these landlords are often the most committed to remaining in the sector for the long term. As the market evolves, there is a growing opportunity for lenders and brokers that can provide the expertise, flexibility and products needed to support increasingly professional property businesses.”