One in seven (14%) landlords are expected to take a specialist buy-to-let (BTL) loan in the next 12 months, Foundation Home Loans has revealed.

The lender’s Q3 2025 Landlord Trends research found that in the third quarter, 10% of landlords held a specialist BTL product, such as a semi-commercial loan, HMO or non-standard property loan.

However, for landlords with 20-plus properties, this proportion holding a specialist product rose to over 20%.

Foundation said that appetite was strongest among portfolio and limited company landlords, with rates, fees and speed cited as the most important factors when choosing a lender.

The firm added that this reflects the growing complexity and professionalism of the landlord base, and the increased demand for specialist tailored lending solutions delivered via brokers.

The research found that the shift towards more structured portfolio management was also evident in the continued growth of limited company ownership, with 22% of landlords now holding at least one property within a limited company, and 70% of their portfolio incorporated.

Among those intending to buy in the next 12 months, 75% planned to do so through a limited company, which is a record high.

Director of sales at Foundation Home Loans, Grant Hendry, said: "The latest data shows a market evolving rapidly towards greater sophistication. For instance, specialist BTL requirements means one in seven landlords now plan to use a specialist loan in the coming year, and this trend is strongest among those already operating through limited companies.

"It reflects a sector that is thinking strategically about portfolio diversification, long-term value and the type of products they are going to require going forward."

The Q3 2025 Landlord Trends research also provided insight into landlord sentiment towards regulation following the Renters’ Rights Bill receiving Royal Assent at the end of October.

Two thirds (66%) of landlords were already aware of the bill prior to its passage, with awareness peaking among limited company and portfolio landlords. Almost three quarters (73%) expected it to have a negative impact on their lettings activity, while 81% said it would make them more selective about who they let to.

However, 50% said they still expect to make a profit following the bill’s introduction, while 44% agreed that the legislation will help professionalise the sector.

Hendry concluded: "With the Renters’ Rights Bill now enacted, landlords are facing another period of adjustment, but the majority remain confident in their ability to operate successfully. Brokers have a vital role in helping them navigate this new landscape and ensure their lending and property strategies remain aligned with the opportunities ahead."

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