The latest Landlord Trends research from Pegasus Insight revealed that limited company ownership is now a significant driver of buy-to-let mortgage activity.
The research revealed that one in five landlords (20%) now own property through a limited company.
In addition, 7% of landlords have their entire rental portfolio held within in a limited company, while 13% have a mix of individually-held and incorporated properties.
The average proportion of a limited company landlord’s portfolio held in this way has more than doubled from 36% in Q1 2020, to 74% in Q2 2025.
This increase was primarily driven by landlords incorporating at the point of new rental property purchase, with almost all of those planning to buy a new buy-to-let property in the next 12 months intending to do so within a limited company.
Incorporation was most common among portfolio landlords with four or more buy-to-let mortgages, with 34% of them having at least one incorporated property.
However, awareness of the specialist lenders operating in this market remained relatively low, suggesting that many landlord borrowers may not be fully informed about the breadth of options available.
Mark Long, founder and director of Pegasus Insight, said: “Limited company ownership has moved from the fringes of the buy-to-let market to the mainstream.
“The incorporation model is especially attractive for portfolio landlords, who are typically higher-rate taxpayers and therefore more sensitive to tax changes.
“These landlords tend to be larger, more sophisticated operators and critically, they are more likely to be active borrowers. That makes them a vital audience for lenders and brokers alike.”
He added: “At the same time, our research shows that awareness of the limited company mortgage market is still patchy. Many landlords don’t have a clear picture of which lenders are active in this space or the range of products available.
“For advisers, that’s both a challenge and an opportunity. With incorporation continuing to gain traction, there’s considerable scope for lenders to raise their profile and for brokers to add real value by steering clients through the complexity of limited company borrowing, while never straying into the realms of giving tax advice themselves.
“Ensuring that landlords are fully supported in this segment will be crucial for sustaining buy-to-let activity in the years ahead.”
