Limited company ownership is now a significant driver of buy-to-let (BTL) mortgage activity, according to Pegasus Insight.

Research by the group found that one in five landlords (20%) now owns property through a limited company.

The Pegasus findings, based on 794 interviews with landlords, also revealed that 7% of landlords have their entire rental portfolio held within in a limited company, while 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 suggested the increase is being primarily driven by landlords incorporating at the point of new rental property purchase, with almost all those planning to buy a new BTL property in the next 12 months intending to do so within a limited company.

Incorporation was most common among portfolio landlords with four or more BTL mortgages, with 34% of them having at least one incorporated property.

Founder and director of Pegasus Insight, Mark Long, said that limited company ownership had “moved from the fringes of the BTL 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,” Long said. “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.”

Pegasus also warned that its research had indicated that awareness of the specialist lenders operating in this market remains relatively low. The firm said this could suggest that many landlord borrowers may not be fully informed about the breadth of options available.

“Many landlords don’t have a clear picture of which lenders are active in this space or the range of products available,” Long added. “For advisers, that’s both a challenge and an opportunity.

“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 BTL activity in the years ahead.”

---