Following the PRA changes in October 2017 pertaining to landlords, the term “Portfolio Landlord” was introduced and became the new expression for the previously named Professional Landlord.
However, it wasn’t simply a name change, the PRA introduced stricter guidelines with regard to how this type of Buy to Let borrower might manage their financial affairs and increased the criteria for determining credit worthiness. You can read more about the PRA Changes.
So, in its simplest form, a Portfolio Landlord can be identified under the following definition: -
“A Portfolio Landlord, is a borrower with four or more distinct mortgaged buy-to-let properties, either together or separately, in aggregate.”
The essence of this change is to make a clear distinction between a “Fair Weather” or “Hobby” landlord and one that has greater experience of the market and its conditions. They are also viewed as business owners and operate their portfolio under a serious business model.