A specialist buy to let lender claims landlords are becoming more confident about the private rented sector despite more red tape and higher costs.
The Foundation Home Loans Landlord Trends research, conducted by Pegasus Insight, suggests 84% of landlords say they remain making profits from lettings in Q1 2026.
Average rental yields are up to 6.5%, while both rental income and portfolio values increased quarter-on-quarter.
The proportion of landlords intending to remain in business rose to 63%, up from 58% in Q4 2025.
However, there is substantial refinancing activity, with 39% of landlords with mortgages planning to remortgage by this time next year.
Landlords are also preparing for future energy efficiency regulation, with 62% of those possessing EPC properties below a ‘C’ rating intending to retrofit.
Meanwhile 43% of landlords report void periods over at least some of the last year and 30% suffered rental arrears.
A Foundation spokesperson says: “While landlords are clearly facing a range of challenges, from rising costs to regulatory change, the fundamentals remain strong.
“Profitability is holding up, yields are stable, and we’re seeing early signs that confidence is beginning to return.
“What is particularly notable is the way in which landlords are adapting.
“Portfolio sizes are increasing, more investors are taking a structured, long-term approach, and there is clear evidence of landlords planning ahead, whether that is through refinancing activity or preparing for future EPC requirements.
“At the same time, we shouldn’t ignore the pressures that remain.
“Softer tenant demand and rising voids show this is a more balanced market than in recent years, and some landlords will continue to reassess their position.
“However, the overall picture is one of a sector that is evolving rather than retreating.”
This article is taken from Landlord Today