Nearly four in ten landlords are planning to refinance during the next year, according to Pegasus Insight.

Refinancing activity is set to be driven disproportionately by larger portfolio landlords, with 56% of those holding four or more mortgages intending to remortgage within the next 12 months.

This is compared to 24% of landlords with one to three mortgages.

Pegasus says this suggests that, despite ongoing regulatory change and wider economic pressures, landlords remain actively engaged with the mortgage market and continue to manage increasingly complex borrowing arrangements across multiple properties.

Those expecting to refinance over the next 12 months anticipate remortgaging an average of 2.7 loans each, underlining the scale of refinancing activity likely to come to market over the next year.

The research also indicates that continued landlord investment in the sector is underpinned by stable tenant demand and long-term occupancy patterns. 

Separate research has found that tenants have currently been in rented accommodation for an average of 8.2 years, including more than five years in their current property on average.

Two thirds of tenants also say they intend to stay in their current rental property when their existing agreement ends, supporting consistent rental income streams for landlords.

A Pegasus spokesperson says: “While much of the recent discussion around the private rented sector has focused on the potential negative impact of the Renters Rights Act and the threat of future rent controls, these findings highlight the continued scale of borrowing activity taking place across the landlord market.

“Landlords are not standing still – many are actively refinancing, restructuring borrowing and reviewing funding arrangements across multiple properties, creating continued demand for dedicated buy-to-let lending and expert advice.

“What also stands out is the stability underpinning the sector. 

“Tenant demand remains resilient and tenancies are often long term in nature, helping to provide landlords with relatively predictable rental income over extended periods.

“That combination of sustained refinancing activity and stable occupancy continues to make the buy-to-let market an important area of opportunity for lenders and intermediaries alike.”