New trend opens opportunities for lenders and brokers in evolving BTL market
One in five landlords now hold rental properties through a limited company, reflecting the increasing importance of company structures in the buy-to-let mortgage sector.
Research from Pegasus Insight shows that 7% of these landlords have placed their entire portfolio within a limited company, while a further 13% own properties both through a company and in their own name.
The proportion of properties held by limited company landlords has also risen sharply, with the average share increasing from 36% in the first quarter of 2020 to 74% by the second quarter of 2025.
This trend is largely driven by landlords choosing to incorporate when purchasing new rental properties. Nearly all landlords planning to acquire a buy-to-let property in the coming year intend to do so through a limited company.
Portfolio landlords—those with four or more buy-to-let mortgages—are most likely to use incorporation, with 34% holding at least one property in a company structure.
Despite this shift, the research indicates that many landlords remain unaware of the full range of specialist lenders operating in the limited company mortgage market. This suggests that some borrowers may not be accessing the breadth of available options.
The findings come as landlords contend with new regulatory and tax pressures. The anticipated Renters’ Rights Bill is already affecting landlord decisions, with some increasing rents in response to expected controls and others reconsidering further investment. In this environment, incorporation continues to offer tax advantages for many, and the trend towards company ownership appears set to persist.
“Limited company ownership has moved from the fringes of the buy-to-let market to the mainstream,” said Mark Long (pictured right), founder and director at Pegasus Insight. “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.
“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.”
Long said that as incorporation grows, there is more opportunity for lenders to increase their visibility and for brokers to guide clients through limited company borrowing.
“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,” he said. “Ensuring that landlords are fully supported in this segment will be crucial for sustaining buy-to-let activity in the years ahead.”
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