According to the latest Landlord Trends report from Pegasus Insight, 7% of landlords have their entire rental portfolio held in a limited company, while 13% have a mixture of individually held and incorporated properties.
When looking at average properties of a limited company landlord’s portfolio held in such a way, this has more than doubled from 36% in Q1 2020 to 74% in Q2 2025.
The report said this was due to landlords deciding to incorporate at the point of a new rental property purchase, and almost all those looking to buy in the next 12 months are planning to do so via a limited company.
Pegasus Insight added that incorporation is the most common among portfolio landlords with four or more BTL mortgages, with over a third having at least one incorporated property.
The report noted that the awareness of specialist lenders is “relatively low”, suggesting some borrowers may not know the breadth of options available.
How to help landlord customers unlock growth
Sponsored by Pepper Money
Limited company BTL has been growing in popularity, with BM Solutions and Coventry Building Society recently entering the space.
The report said the upcoming Renters’ Rights Bill could further fuel the trend of incorporation as it was a “route to greater tax efficiency”.
According to Criteria Brain, 49 out of 80 lenders list accepted limited company BTL business.
Limited company ownership is now ‘mainstream’
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.”
