The Intermediary – September 2026 - Flipbook - Page 23
I N P RO F I L E
Hendry says: “Brokers continue to bring
us increasingly complex cases and portfolio
structures, creating strong demand for specialist
lending solutions that can accommodate a wider
range of borrower and property scenarios.”
Challenges create opportunities
One of the greatest challenges is the rising
complexity of tax changes, regulatory reform, and
compliance obligations.
These pressures must be managed alongside
higher operating costs and risks such as arrears,
void periods and local market fluctuations.
Hendry says successful investors must look
beyond headline yields and consider the full
cost and risk profile of an investment. However,
he also believes the changing market presents
considerable opportunities, particularly for
landlords prepared to diversify geographically.
Hendry explains: “Landlords have become far
more targeted in where they invest. Investment
decisions are increasingly being driven by longterm yield potential, sustainability and resilient
rental demand.
“This demonstrates that many landlords are
focused on building portfolios that will perform
over the long-term rather than chasing short-term
opportunities.”
However, Hendry cautions: “Higher yields
do not necessarily mean lower risk. Investors
need to evaluate overall performance, including
tenant demand, arrears, void levels and longterm resilience, rather than focusing on yield
in isolation.”
There is also evidence that landlords have
responded positively to changing sustainability
requirements and evolving expectations around
Energy Performance Certificates (EPCs). Many
have already upgraded properties, disposed of
unsuitable or older stock, and taken steps to
future-proof their portfolios.
Hendry says: “The quality of properties coming
through remains strong. That suggests many
investors have already taken a strategic approach
to portfolio management.”
While regulatory and tax changes are influencing
landlord behaviour, Hendry does not believe they
are producing a widespread withdrawal from the
sector. Instead, they are encouraging investors to
become more selective and professional.
Landlords are carrying out greater due diligence,
placing more emphasis on sustainable returns, and
in some cases, acquiring fewer properties while
making more strategic purchasing decisions.
Foundation has also seen continued interest in
transactions that enhance both value and yield,
such as acquiring freeholds and creating separate
leasehold units.
Hendry says: “Professional landlords continue to
demonstrate a strong ability to adapt to changing
market conditions.”
Nevertheless, he warns about the cumulative
weight of regulation, adding: “The biggest risk
for the sector would be landlords deciding that
regulation and compliance requirements have
become too burdensome, given the important role
the [sector] plays in providing housing across the
UK. What we’re seeing today, however, is a market
that is adapting rather than retreating.”
The value of specialism
Foundation’s focus on specialist lending is a
“consistent strategy over many years” that is
central to its proposition. Hendry says: “Brokers
value that consistency because it provides
confidence and certainty in an increasingly
complex marketplace.”
Foundation works to understand the wider
context of each case, while refining its proposition
in response to changing market needs and broker
feedback. Several specialist areas offer further
growth potential, including holiday lets, shortterm lets and Foundation’s Property Plus range.
Holiday lets, for example, remain attractive
to many landlords, supported by the ongoing
strength of UK domestic tourism. Indeed,
according to VisitBritain, total domestic tourism
spending increased by 3% year-on-year to £78bn in
2025, while spending on overnight trips rose by 6%
to £29bn.
“That continued growth highlights the
strength of the UK tourism market and helps
support demand for well-located holiday-let
accommodation,” Hendry says.
Property Plus is also becoming a more important
part of Foundation’s proposition, as landlords
increasingly look beyond traditional single-unit
investments. Hendry adds: “As landlords become
more sophisticated, brokers need access to lenders
that understand specialist property scenarios and
portfolio structures.”
Consistency and evolution
Foundation will continue investing in its specialist
proposition, including further enhancements
to its semi-commercial offering and support for
more complex borrowers. It is also exploring
opportunities in new regulated lending markets,
with the aim of broadening support for brokers
active across both residential and BTL sectors.
Hendry concludes: “Our focus remains on
sustainable growth, proposition development
and long-term broker support. We will continue
responding to changing customer needs while
maintaining the specialist expertise that underpins
our business.”
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