Surge in limited company landlords fuels BTL mortgage growth

One in five landlords now holds at least one rental property through a limited company which has boosted the buy to let mortgage sector.

That’s according to Pegasus Insight’s latest Landlord Trends research which found that 20% of landlords own properties within a limited company structure.

Also, 7% of landlords manage their entire portfolio this way and 13% are blending individual and corporate ownership.

The proportion of a landlord’s portfolio held in a limited company has surged from 36% in early 2020 to 74% by mid-2025.

Landlord’s ‘patchy’ limited company knowledge

The firm’s founder and director, Mark Long, 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.”

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.”

Incorporation driven by investments

Pegasus’ research shows the shift to limited company ownership is largely driven by landlords choosing incorporation when purchasing new rental properties.

Nearly all landlords who are planning to buy to let properties in the next year are intending to use a limited company.

Portfolio landlords, those with four or more properties, are leading the trend, with 34% owning at least one incorporated property.

However, awareness of specialist lenders tailored to this market remains limited, leaving many landlords unaware of the full range of financing options available.

Landlords switch to limited companies

The rise in incorporation comes amid increasing regulatory and tax challenges.

Pegasus says that the upcoming Renters’ Rights Bill is already shaping landlord decisions.

Some are increasing rents to offset expected restrictions, while others are unwilling to invest further.

Despite these pressures, limited company ownership continues to offer tax advantages, which is a trend that’s likely to persist, the firm says.

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Important context: Property118 is not currently recommending Section 162 incorporation for landlords with mortgages while legal uncertainty remains over the treatment of mortgage liabilities. Read our current position here: Why Property118 is not currently recommending s162 incorporation to landlords with mortgages

A conversation worth having?

If you are weighing up your own strategy, whether that’s to sell, expand, or restructure to improve profitibility, it is worth having a discussion with a Property118 consultant to take a closer look at how your portfolio is structured as a whole now, and to forecast the outcomes based on multiple scenario’s.

These conversations are typically most useful for landlords with established portfolios and relatively modest borrowing who are beginning to reflect on how their assets could work more effectively in the years ahead.