More landlords switch to limited company ownership

A fifth of landlords now hold at least one buy to let mortgage within a limited company structure, with the figure climbing to 30% among those managing larger portfolios.

That’s according to new findings from Foundation Home Loans with its Landlord Trends research highlighting a big shift towards incorporation, particularly among seasoned investors.

Over the past five years, the proportion of a landlord’s portfolio held in a limited company has soared from 36% in Q1 2020 to 74% in Q2 2025.

Portfolio landlords, those with multiple properties, are at the forefront, with 34% owning at least one incorporated property.

Limited company use growing

Foundation’s director of sales, Grant Hendry, said: “The adoption of limited company structures by landlords continues to gather significant momentum, particularly among more experienced investors who are growing and restructuring their portfolios.

“This shift reflects both a strategic response to the tax landscape and a desire for greater long-term flexibility.”

He added: “The research underlines the growing importance of limited company buy to let finance and reinforces the commitment required from lenders to deliver tailored, specialist solutions that meet the evolving needs of today’s landlords.”

More landlords will incorporate

The research also shows that 7% of all landlords have fully transitioned their portfolios to limited company ownership, while 13% maintain a blend of individual and company-held assets.

Looking ahead, 63% of landlords planning to expand their portfolios intend to purchase through a limited company, compared to just 29% opting for personal ownership.

A further 6% will decide based on future circumstances.

Strikingly, no landlords currently using a limited company structure plan to buy their next property as individuals.

BTL mortgage refinancing

Buy to let mortgage refinancing trends also reflect this shift towards buying with a limited company.

Portfolio landlords with four or more BTL mortgages are more likely to refinance within a limited company than consumer borrowers (30% versus 8%).

Beyond competitive rates, landlords prioritise low fees, flexible overpayment options and high-quality service when selecting lenders for limited company financing.

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