Professionalisation of the PRS reinforces need for specialist landlord lending
The UK’s Private Rented Sector (PRS) is becoming increasingly professionalised, with landlords managing larger portfolios, adopting more sophisticated ownership structures and creating growing demand for specialist and portfolio lending solutions.
The latest Landlord Trends research from Pegasus Insight reveals that the average landlord portfolio has increased to 7.3 properties, underlining the continued shift towards larger-scale, business-minded investors. The research also shows that 21% of landlords now describe themselves as full-time or self-employed landlords, up from 17% at the end of 2025.
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.
Limited company landlords are at the forefront of this trend. Their average portfolio now stands at 15.3 properties, up from 12.8 in Q4 2025, and around 66% of their holdings are now owned through a corporate structure.
Demand for finance is also being driven by refinancing activity. Almost four in ten landlords with borrowing in place expect to remortgage in the next year, rising to 56% of those with four or more buy-to-let mortgages. Portfolio borrowers are almost twice as likely as smaller landlords to be active in the refinancing market.
Mark Long, founder and managing director of Pegasus Insight, commented: “The PRS is becoming increasingly professional and sophisticated. The image of the landlord with one or two properties operating on the side of another career no longer tells the full story.
“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.”