72% of limited company buy-to-let landlords entered the market in the past five years with nearly a third (30%) entering for the first time, research from Coventry for intermediaries revealed.
This growth is expected to continue, with 50% of landlords planning to expand their portfolios in the next couple of years.
Recent changes to tax policy and new regulations, such as the Renters Reform Bill and Capital Gains Tax, accelerated this shift.
For 41% of landlords surveyed, tax efficiency was the main reason for incorporating, as they seek more structured and tax-efficient approaches to portfolio management.
Coventry’s latest report, The broker’s guide to limited company BTL mortgages, revealed brokers are experiencing the shift, with 90% of brokers advising on limited company BTL mortgages in the past three years – a sharp increase from a quarter advising on them a decade ago.
Despite this, the research showed only 35% of landlords arranged their most recent limited company BTL mortgage through a broker, leaving a significant share of landlords who may not be receiving professional advice.
Jonathan Stinton, head of intermediary relationships at Coventry for intermediaries, said:n “Landlords are looking for more than just the best rate – they want sound, strategic advice to help them grow professionally and navigate the complexity of limited company BTL.
“That’s a golden opportunity for brokers to deepen relationships and offer real value.
“Our research shows a clear shift toward professionalisation, with landlords making more structured, long-term decisions.
“This creates the opportunity for brokers to widen their client base to new property investors and support landlords on their limited company BTL journeys.”
Sarah Brown, senior mortgage proposition manager at Coventry for intermediaries: “More landlords are moving over to limited company BTL, so they’re asking tougher questions about tax planning, structure and long-term planning.
“We’ve listened closely to what brokers are telling us and built our limited company BTL proposition around that.
“By combining simplicity, service, and expertise we’re helping brokers deliver better outcomes – and grow their business along the way.”
