Around two in three landlords (64%) have reported little impact on their business in Q3 as a result of COVID-19, according to new findings from Foundation Home Loans.

This represented a 3% increase from the 61% reported in Q2, with little differentiation by portfolio size.

The lender’s study, undertaken in September by BVA BDRC, also indicated that just 1% of landlords are expecting to lose their business as a result of the pandemic.

The research was based on 621 online interviews and suggested the proportion expecting to suffer financial hardship has declined marginally to 9%, down from 11% in Q2, but did increase slightly among landlords with portfolios of more than 20 properties. Only one in three landlords reported that they have seen their lettings income reduce as a result of the pandemic.

Furthermore, the research found that it was the self-employed landlords – those who make their living from rental income – who were most likely to feel they have been negatively impacted by the pandemic (62%). This compared to landlords who are retired (39%), or employed part-time (45%). Despite this, only a tiny fraction (1%) of landlords expect to lose their business as a result of Covid-19.

“It’s testament to the robust nature of the buy-to-let sector – alongside the resilience, long-term planning and strength of portfolios across the UK – that such an overwhelming number of landlords have successfully navigated their way through one of the most challenging periods in recent history,” said Foundation commercial director, George Gee.

“It is encouraging to see that even the landlords in London are now reporting some indicators of recovering tenant demand.”

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