Supporting landlords through the shift to limited company BTL – Stinton

At the heart of this shift is the move towards setting up a limited company.

Coventry for Intermediaries’ latest report, The broker’s guide to limited company BTL mortgages, revealed that 72% of limited company landlords entered the market in the last five years. This isn’t a passing trend – it signals a professionalisation of the sector, making brokers more vital than ever in helping clients navigate incorporation, regulation and portfolio strategy.

Shifting motivations

It’s clear from the data that landlords’ motivations have changed. Rising tax and regulatory burdens are prompting a shift from casual or ‘accidental’ landlords to professional investors with long-term, business-minded strategies.

Landlords with portfolios valued between £1m and £10m are using limited companies to build scalable, business-like operations. Even landlords with just a few properties are embracing incorporation to gain clearer oversight and more sustainable portfolio management. With half of landlords planning to grow their portfolios in the next two years, many see limited companies as the foundation for future expansion.

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What’s holding some landlords back?

Despite the clear benefits, incorporation isn’t without its challenges. 33% of landlords say they found understanding the legal and tax implications of limited company BTL a challenge. Others find the administrative complexity or the uncertainty around future policy difficult to navigate.

These concerns are particularly common among those new to limited companies or landlords who’ve built their portfolios under more traditional ownership models. Without expert guidance, it’s easy to feel overwhelmed.

Broker guidance gap

Despite these challenges, many landlords aren’t leaning on brokers as much as they should. Just 35% of landlords arranged their last limited company BTL mortgage through a broker. That means a significant number are navigating these complex decisions without support.

Without professional input, landlords risk missing out on the most suitable products, overlooking potential cost savings, or failing to consider the broader implications of their decisions. While brokers aren’t tax specialists, they are central to helping clients make informed decisions and signposting them to specialists where necessary. John, one of the brokers we spoke to as part of our research, said he signposts clients to HMRC guidance, asks probing questions that highlight unseen risks and helps clients understand company director responsibilities. By helping make these connections, brokers add value that builds the trust and credibility needed to turn one-offs into long-term client relationships.

The growing opportunity for brokers

Our data shows that 70% of brokers have seen an increase in clients seeking advice about limited company BTL. And 90% of brokers have been advising on these products for three or more years, compared with 25% advising for more than 10 years.

As more landlords look to incorporate, expand, or enter the market for the first time under a limited company structure, brokers must provide more than just product knowledge. They must serve as comprehensive partners, adding value at every stage by guiding landlords through market changes and regulatory requirements. Brokers can also help find products that suit their individual needs and goals and connect them with industry partners, like accountants, to tackle some of the challenges when incorporating.

Ultimately, landlords are making long-term decisions, and they need partners and brokers who can support them with this goal. The next few years are a perfect opportunity for brokers to cement themselves at the centre of the conversation and ensure they’re building lasting relationships with clients.