According to a report by Foundation Home Loans, the proportion of properties held within limited companies has nearly doubled over the past five years from 36% in Q1 2020 to 66% in Q1 2025.

Landlords operating limited company structures also have larger portfolio sizes, with an average of 14.6 properties compared to 5.2 properties of those within those held in their personal name.

A fifth of landlords own at least one house in multiple occupation (HMO) property, going up to a quarter among portfolio landlord borrowers.

Approximately 6% own holiday let properties, doubling among those landlords with larger portfolios.

The report stated that 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.

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Rental yields remain high and remortgage activity expected to stay strong

Foundation Home Loans said the average rental yield came to 6.3%, which is around 0.2% below the 10-year high recorded in Q3 2024.

The majority – 84% – of landlords are making a profit, with 17% reporting a large profit and 67% reporting a smaller profit.

For portfolio landlords with four or more buy-to-let (BTL) mortgages, 80% remain in profit despite “higher borrowing and expenditure levels”.

Foundation Home Loans said remortgage activity is expected to stay strong this year, with 38% of landlords with BTL borrowing planning to remortgage or do a product transfer in the next 12 months.

Portfolio landlords are expected to refinance three properties on average, and three-quarters of landlords said they will opt for a fixed rate.

About 32% said they will opt for a two-year fixed rate, while 35% said a five-year fixed rate would be preferred.

Data shows ‘continuing evolution’ of landlords

Grant Hendry, director of sales at Foundation Home Loans, said the data showed “continuing evolution and resilience within the landlord community”.

He said: “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.

“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 due to a highly competitive product range, with criteria such as the utilisation of high, medium and low rental figures averaged over 39 weeks, maximum £2m loans, limited company availability and early remortgage, with no minimum income requirements.”

Hendry said landlords are “clearly broadening their portfolios in ways that [demand] deeper product expertise and flexible criteria”.

“This is where advisers and specialist lenders, like Foundation Home Loans, can offer tangible value through products designed specifically to support this kind of diversification,” he noted.

Hendry continued: “It’s encouraging to see landlord profitability remaining strong, with rental yields holding up exceptionally well given the broader economic context. With 84% of landlords still making a profit and average yields of 6.3%, the market remains strong, particularly for experienced operators with well-managed portfolios.

“The remortgage opportunity this year remains very real; 38% of landlords with borrowing expect to refinance, many with multiple mortgages to review. That’s a prime opportunity for advisers to deliver solutions that match landlords’ ambitions, particularly those seeking to release equity to grow portfolios.

“This is a moment where good advice and flexible lending can make all the difference. We’re committed to supporting advisers in delivering both.”