The private rented sector (PRS) is becoming "increasingly professionalised", with landlords managing larger portfolios and creating growing demand for specialist and portfolio lending solutions, Pegasus Insight has stated.

The firm’s latest Landlord Trends research revealed that the average landlord portfolio has increased to 7.3 properties, underlining the continued shift towards larger-scale, business-minded investors. Over one in five (21%) landlords now describe themselves as full-time or self-employed landlords, up from 17% at the end of 2025.

Pegasus Insight said the findings suggest that, despite ongoing regulatory and tax changes, a significant proportion of landlords are treating property investment as a professional business rather than a sideline activity.

The research found that limited company landlords are at the forefront of this trend, with the average portfolio now standing at 15.3 properties, up from 12.8 in Q4 2025, and two thirds of their holdings are now held through a corporate structure.

Demand for finance is also being driven by refinancing activity, with almost two in five landlords with borrowing in place expecting to remortgage in the next year, rising to 56% of those with four or more buy-to-let mortgages.

Furthermore, portfolio borrowers are also twice as likely as smaller landlords to be active in the refinancing market.

Founder and managing director at Pegasus Insight, Mark Long, said the sector is becoming "increasingly professional and sophisticated", with the the image of the landlord with one or two properties operating on the side of another career no longer telling the full story.

He concluded: "The PRS is undergoing a gradual but important structural shift. We are seeing fewer landlords treating property as a sideline investment and more operating as professional businesses with larger, more sophisticated portfolios.

"That has significant implications for the mortgage market. Larger landlords tend to have more complex borrowing needs, make greater use of limited company structures and are more likely to require specialist lending solutions and refinancing support.

"At the same time, these landlords are often the most committed to remaining in the sector for the long term. As the market evolves, there is a growing opportunity for lenders and brokers that can provide the expertise, flexibility and products needed to support increasingly professional property businesses."

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