Landlords holding investment property through limited companies are playing an increasingly prominent role in the buy-to-let mortgage market, according to new research from Pegasus Insight.
The study found that one in five landlords now owns at least one property through a limited company. Within this group, 7% hold their entire portfolio under incorporation, while a further 13% operate with a mix of personally and company-held properties.
The shift towards incorporation has accelerated sharply over the past five years. In early 2020, just over a third of limited company landlords’ portfolios were structured this way, but by the second quarter of 2025 that figure had more than doubled to 74%. Almost all landlords planning to purchase additional rental property in the next year expect to do so within a limited company structure.
The trend is particularly marked among portfolio landlords, with 34% of those holding four or more buy-to-let mortgages owning at least one property in a company.
The research also points to a gap in knowledge among investors, with many landlords still unaware of the range of specialist lenders offering limited company products.
The findings come as the sector grapples with renewed regulatory and tax pressures. The forthcoming Renters’ Rights Bill has already influenced landlord behaviour, with many opting to increase rents in anticipation of tighter controls while rethinking new investment plans.
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.
“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.”
He added that with incorporation set to remain a key route to tax efficiency, there is scope for lenders to raise their profile and for brokers to guide clients through the complexities of limited company borrowing without venturing into tax advice.
Pegasus Insight said ensuring landlords are properly supported in this segment would be vital to sustaining buy-to-let activity in the coming years.
