One in five landlords have a buy-to-let mortgage on property held in a limited company
The latest Q2 2025 Landlord Trends research, conducted by Pegasus Insight on behalf of Foundation Home Loans, has revealed that 20% of landlords have at least one buy-to-let mortgage for property held in a limited company, rising to 30% amongst portfolio landlords.
The research also charts the rising incorporation trend amongst landlords. It outlines that the average proportion of a limited company landlord’s portfolio held within such a structure has more than doubled over the past five years, increasing from 36% in Q1 2020 to 74% in Q2 2025.
Limited company ownership is reported to be especially prevalent among portfolio landlords with 34% reporting at least one incorporated property. Meanwhile, 7% of all landlords have fully incorporated portfolios, and a further 13% own a mix of individually and company-held properties.
The data also highlights future purchase intent, with buying through a limited company structure remaining the most appealing option for those looking to add property to their portfolios (63%). Only 29% intend to buy in a personal name and a further 6% will make a decision depending on circumstances at the time of purchase. Notably, no landlords who currently have property held in a limited company plan to make their next purchase as an individual.
When it comes to refinancing, portfolio borrowers with 4+ buy-to-let mortgages are significantly more likely than consumer borrowers to refinance in a limited company (30% vs. 8%). For those arranging limited company buy-to-let finance, the most important lender selection factors – aside from rate – are minimal fees, overpayment flexibility, and service quality.
Grant Hendry, director of sales at Foundation Home Loans, commented: “The adoption of limited company structures by landlords continues to gather significant momentum, particularly among more experienced investors who are growing and restructuring their portfolios. This shift reflects both a strategic response to the tax landscape and a desire for greater long-term flexibility.
“The research underlines the growing importance of limited company buy-to-let finance and reinforces the commitment required from lenders to deliver tailored, specialist solutions that meet the evolving needs of today’s landlords. And whether clients are refinancing, expanding, or reshaping their portfolios, we’re here to support them with products and service designed for a more complex market.”