Limited company landlords overwhelmingly favour company structures
Almost all limited company landlords planning to acquire another buy-to-let property over the coming 12 months expect to make their purchase through a company structure, new research reveals.
According to CHL Mortgages’ analysis of Pegasus Insight’s latest Landlord Trends report, landlords who’ve already incorporated are overwhelmingly choosing to continue using company structures as they expand their portfolios.
The findings indicate that incorporation is becoming an established long-term approach for these landlords, rather than simply a way of financing individual transactions.
Kay Richardson, head of sales at CHL Mortgages, said: “Once landlords have adopted a limited company structure, there appears to be very little appetite to turn back. Almost all of those planning to purchase again over the next 12 months expect to do so through a company, suggesting that incorporation is becoming a lasting part of their investment strategy rather than a decision made one property at a time.”
The report shows that almost a quarter (24%) of landlords now hold at least one rental property through a limited company. The figure rises to 43% among portfolio landlords with four or more buy-to-let mortgages.
Company ownership is also becoming more deeply embedded within existing portfolios. Among landlords who use limited companies, the average proportion of their rental properties held within a corporate structure has increased from 57% in Q3 2021 to 75% in Q3 2026.
The report attributes much of this increase to landlords purchasing additional properties through companies, rather than transferring properties they already own.
Richardson continued: “This is not simply about more landlords using limited companies. It’s about the extent to which existing company landlords are choosing to build their portfolios through those structures. That creates a growing need for mortgage solutions capable of accommodating a wide range of circumstances, from properties held in personal and company names to borrowing across single or multiple limited companies.”
Landlords operating through limited companies also tend to have larger portfolios, owning an average of 17 properties compared with eight across the wider landlord sample.
Their appetite for further investment is stronger too. While 6% of all landlords surveyed intend to purchase additional rental property over the next year, that figure rises to 18% among those operating through limited companies.
The findings suggest that landlords using corporate structures could account for a significant share of new buy-to-let investment over the coming 12 months.
Richardson concluded: “There’s a clear opportunity to support landlords who remain ambitious about developing their portfolios. Their ownership arrangements can be varied, so flexible underwriting and clear, consistent criteria are essential. Lenders and brokers that take the time to understand the complete picture will be best placed to help landlords secure finance that fits both their current circumstances and their longer-term plans.”