Limited company landlord confidence has risen sharply, with 84% expecting rental yields to go up over the next year, research from Kensington Mortgages found.
Nearly nine in 10 landlords said they felt confident about the market outlook, and 80% expected rental demand to rise.
More than three quarters anticipated property values would also increase.
However, 77% of landlords expected mortgage costs to go up, and 81% said their running costs, such as repairs, insurance and maintenance, had increased in the past year.
Almost four in five said they thought regulations would become more challenging.
Interest rates were the single biggest factor for landlord confidence, with 31% naming them as their main concern.
Regulation, property prices and rental demand all followed closely, while the economic outlook, mortgage availability, and taxation were also noted.
Over half plan to keep their portfolio size the same in the next 12 months, while 38% plan to expand.
Only 8% intend to reduce their holdings.
The research found 74% of landlords said it was easy to get buy-to-let mortgage finance.
The study also looked at portfolio structures.
Over half (53%) of limited company landlords hold all their properties within the company structure.
Those who also own properties personally reported an average gross rental yield of 5.04% on company-held portfolios, compared to 4.88% on personally held assets.
Family homes made up the largest share of assets, at 40%, followed by houses in multiple occupation (HMOs) with six bedrooms or more at 35%.
Single-tenant homes accounted for 33%, and HMOs with fewer than six bedrooms at 27%.
Holiday and student lets were less popular.
Looking ahead, 95% of landlords said they wanted to diversify into different property types.
Corporate lets were the most popular option, followed by larger HMOs, family homes and single-tenant properties.
Allison Buckley, CEO of Kensington Mortgages, said: “The latest findings from our BTL Barometer underline the resilience and professionalism of today’s limited company landlords.
“Despite experiencing higher operating expenses and anticipating increased mortgage costs and greater regulatory complexity ahead, landlords remain firmly committed to the sector – underpinned by strong tenant demand and expectations of improving yields.
“What’s particularly notable is that confidence is not translating into complacency.”
Buckley added: “Many landlords are actively reviewing and diversifying their portfolios, with growing interest in corporate lets and larger HMOs, demonstrating a clear focus on long-term income and adaptability.
“The limited company structure continues to play a central role in this evolution, with yields marginally higher on company-held portfolios compared to personal holdings.
“As the market continues to evolve, specialist lenders have an important role to play in providing the flexible, tailored financing solutions that professional landlords need to navigate change and seize opportunity.”