Limited company ownership is increasingly shaping the buy-to-let mortgage market, according to a report from Pegasus Insight.

The Landlord Trends Research Report Q2 2025, found 20% of landlords have incorporated with 7% holding their entire rental portfolio in a limited company. A further 13% operate a mix of personally and company-held properties.

The study, is based on 794 online interviews with members of the National Residential Landlords Association (NRLA).

The report shows that the average proportion of a limited company landlord’s portfolio held this way has risen sharply—from 36% in Q1 2020 to 74% in Q2 2025. Most new purchases are now made through incorporated vehicles, particularly among portfolio landlords with four or more buy-to-let mortgages, 34% of whom hold at least one property in a limited company.

Tax efficiency remains the main driver, according to the research, with regulation and the forthcoming Renters’ Rights Bill (RRB) prompting many to increase rents and rethink new investment.

However, Pegasus Insight says awareness of specialist limited company lenders remains relatively low.

Pegasus Insight founder and director Mark Long says: “Limited company ownership has shifted from niche to mainstream in buy-to-let. Portfolio landlords, who are often higher-rate taxpayers, find the model especially attractive—and they are typically the most active borrowers. That makes them a critical audience for lenders and brokers.

“But our research shows that awareness of the limited company mortgage market is still patchy. Many landlords don’t know which lenders operate in this space or the breadth of products available.

“For advisers, that’s both a challenge and an opportunity. With incorporation gaining traction, lenders can raise their visibility and brokers can add real value by helping clients navigate limited company borrowing—without straying into 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.