As more UK landlords turn to limited company structures to manage their rental portfolios, they are significantly boosting activity in the buy to let mortgage sector.
According to research firm Pegasus Insight, one in five landlords now holds at least one property in a limited company.
The research also shows that 7% own their entire portfolio this way and 13% are managing a combination of personal and incorporated holdings.
However, the shift towards incorporation is accelerating, with the average share of a landlord's portfolio held in a limited company rising sharply from 36% in early 2020 to 74% by mid-2025.
Landlords incorporating is mainstream
The founder and director of the firm, 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."
He added: "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."
Using limited companies to purchase
Pegasus says the incorporation trend is largely driven by landlords opting for limited company structures when acquiring new rental properties.
Nearly all landlords planning to purchase additional buy to let properties within the next year intend to do so through a limited company, reflecting the model's appeal for tax efficiency.
Portfolio landlords, that's those with four or more BTL mortgages, are particularly drawn to this approach, with 34% holding at least one property in a limited company.
Mr Long said: "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."
Renters' Rights Bill impact
He adds: "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."
The rise in limited company ownership comes amid increasing regulatory and tax challenges for landlords, Pegasus says.
The upcoming Renters' Rights Bill is already shaping landlord decisions, with some increasing rents to offset anticipated restrictions, while others are hesitant to expand their portfolios.
In this environment, incorporating properties into a limited company remains a popular strategy for mitigating tax burdens.
Portfolio landlords looking to buy
Meanwhile, research from Landbay has found that more than half the UK's buy to let landlords plan to grow their property portfolios in the next year.
That's a sharp rise from the 27% reported after last year's Autumn Budget, which introduced a sudden stamp duty hike on investment properties.
Landbay says 52% of landlords are now eager to purchase, with 64% factoring the increased stamp duty into their negotiations.
Also, 52% are targeting homes needing minimal upgrades to meet future EPC standards.
Non-portfolio landlords with fewer than four properties and larger investors with 16 to 30 properties show the strongest intent, particularly in the South East, followed by London and the North West.
The lender's sales and distribution director, Rob Stanton, said: "While there are those that try to talk down the BTL sector and focus solely the obstacles, it is fantastic to see many landlords are still looking at the opportunities."
Student landlords and incorporation
The managing director of Accommodation for Students, Simon Thompson, said: "For student landlords, the shift to limited company ownership offers a promising path to navigate the evolving buy to let landscape.
"By incorporating, they can potentially reduce tax liabilities while capitalising on the growing demand for student housing."
He added: "However, the lack of awareness about specialist lenders means many landlords may miss out on tailored financial solutions.
