Limited Company Buy-to-Let Ownership Hits 20% as Tax Efficiency Drives Growth

Limited company ownership in buy-to-let is moving from niche to mainstream, with one in five landlords now holding properties through incorporated vehicles.

Pegasus Insight’s Landlord Trends Research Report Q2 2025 reveals that 20% of UK landlords now operate through limited companies. Of these, 7% hold their entire portfolio in a company structure, while 13% manage a mix of personal and company-held properties. The study, based on 794 online interviews with members of the National Residential Landlords Association (NRLA), also shows the average share of a limited company landlord’s portfolio held in this way has jumped sharply—from 36% in Q1 2020 to 74% in Q2 2025. Most new purchases, particularly by portfolio landlords with four or more buy-to-let mortgages, are now made through incorporated vehicles, with 34% holding at least one property in a limited company.

Tax efficiency remains the primary reason landlords incorporate, while upcoming legislation, including the Renters’ Rights Bill (RRB), is prompting many to review rents and investment strategies. Despite the rising popularity of limited company ownership, Pegasus Insight highlights that awareness of specialist limited company lenders remains relatively low. Mark Long, founder and director of Pegasus Insight, commented: “Limited company ownership has shifted from niche to mainstream in buy-to-let. Portfolio landlords, often higher-rate taxpayers, find the model particularly attractive and are typically the most active borrowers. That makes them a key audience for lenders and brokers. “However, our research shows awareness of the limited company mortgage market is patchy. Many landlords are unsure which lenders operate in this space or what products are available. For advisers, this presents both a challenge and an opportunity. Brokers can add real value by helping clients navigate limited company borrowing—without offering tax advice. Ensuring landlords are well supported will be vital to sustaining buy-to-let activity in the years ahead.” Earlier this month, a separate report found that one in five buy-to-let companies set up in the UK so far this year are owned by international landlords.