Landlords operating within limited company structures are a growing force in the buy to let market, a mortgage lender says.
Pegasus Insight says 20% of landlords now owns at least one property through a limited company: 7% of landlords have their entire rental portfolio held within in a limited company; and 13% have a mix of individually-held and incorporated properties.
The average proportion of a limited company landlord’s portfolio held in this way has more than doubled from 36% in Q1 2020, to 74% in Q2 2025.
Pegasus says the increase continues to be primarily driven by landlords incorporating at the point of new rental property purchase, with almost all of those planning to buy a new buy-to-let property in the next 12 months intending to do so within a limited company.
Incorporation is most common among portfolio landlords with four or more buy-to-let mortgages, with 34% of them having at least one incorporated property.
The findings come at a time when landlords are facing renewed regulatory and tax pressures.
The Renters Rights Bill – expected to become law this month – is already influencing landlord behaviour, prompting many to raise rents in anticipation of tighter controls, while discouraging new investment. Against this backdrop, Pegasus suggests incorporation remains a route to greater tax efficiency for many landlords, a structural trend which looks set to continue.
Director Mark Long comments: “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.
“Ensuring that landlords are fully supported in this segment will be crucial for sustaining buy-to-let activity in the years ahead.”
