Confidence among landlords has softened slightly amid concerns around how the Renters’ Rights Act changes will impact the private rented sector (PRS), research by Foundation Home Loans has indicated.
Professional landlords remain the main drivers of buy-to-let (BTL) borrowing and advice demand, however.
The research, conducted by Pegasus Insight on behalf of Foundation among 837 landlords during Q4 2025, revealed that one in three landlords sought new finance, refinancing or a product transfer in 2025. Among landlords with BTL borrowing in place, this climbed to six in 10.
On average, landlords with borrowing now hold 6.5 individual BTL loans across more than two lender relationships, while seven in 10 landlords said they had used a broker to arrange their most recent mortgage, with most starting the process at least three months ahead of their deal ending.
Foundation said this highlights a landlord borrower base that is planning earlier, relying heavily on advice, and seeking specialist support to manage risk and affordability in a changing market.
However, the lender also suggested that concerns around the Renters’ Rights Act now sit firmly at the centre of landlord decision-making.
Foundation’s research showed that three quarters of landlords are aware of the legislation, an increase of 8% on the previous quarter, with awareness highest among portfolio and limited company landlords. Around 75% of landlords believe the act will have a negative impact on their own lettings activity, while 84% expect it to have a negative impact on the PRS as a whole.
Director of sales at Foundation, Grant Hendry, commented: “While confidence has softened slightly, the underlying behaviour of professional landlords remains very clear. They’re still borrowing, refinancing and seeking advice in significant numbers, and they’re doing so earlier and more carefully than before.
“The complexity of portfolios, combined with regulatory change such as the Renters’ Rights Act, means brokers and specialist lenders have an increasingly important role to play. This is not a market stepping away from the PRS, or BTL, or the finance needs required in this space, but it is one that is becoming more selective and more reliant on experience and support.
“Concerns around possession, court delays and future regulation are clearly shaping landlord behaviour, particularly for smaller operators. However, professional landlords continue to adapt their strategies and remain focused on long-term sustainability. That is where Foundation’s ability to deliver specialist lending, manual underwriting and strong broker relationships really matter.”
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