The professionalism of private landlords continues to develop, with 60% of buy-to-let owners who intend to buy a property over the coming year plan to do so within a limited company structure.
Over the past five years, the proportion of homes held within limited companies has risen sharply, from 36% in the first quarter of 2020 to 66% in the first quarter of 2025, the latest quarterly Landlord Trends report shows.
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, according to the research from Foundation Home Loans.
The survey says: “The research also confirms the strong performance of landlord portfolios, even amidst increasing costs and regulatory changes.”
The average rental yield remains at 6.3%, just 0.2% below the 10-year high recorded in the third quarter of 2024.
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.
The survey adds that “remortgage activity is expected to remain strong” this year, with 38% of landlords with BTL borrowing intending to remortgage or carry out a product transfer in the next 12 months.
It adds that portfolio landlords expect to refinance three mortgages on average, and three-quarters of landlords say they will opt for a fixed rate.
Of those choosing a fixed deal, 32% anticipate selecting a two-year fix and 35% favour a five-year fix, which highlights “the demand for flexibility amid interest rate uncertainty,” the study adds.
The survey also captures the mood of landlords in the face of regulatory change.
Reform of possession laws — particularly the proposed removal of Section 21 – is the chief concern among investors “more so than the Renters’ Rights Bill as a whole”.
There is also mounting concern about future energy performance certification requirements and the proposed minimum energy efficiency standards.
The study says landlords cite three core issues of concern — the cost of compliance, uncertainty around timescales, and the perceived disconnect between regulation and support for the supply side of the private rented sector.
Foundation Home Loans director of sales Grant Hendry says: “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.
“The fact 60% of those planning to buy this year intend to do so through a limited company reflects how embedded this behaviour has become.”
The current first quarter 2025 Landlord Trends research was conducted by Pegasus Insight on behalf of Foundation Home Loans.
