Limited firm possession is more and more shaping the buy-to-let mortgage market, in line with a report from Pegasus Insight.
The Landlord Trends Research Report Q2 2025, discovered 20% of landlords have included with 7% holding their complete rental portfolio in a limited firm. An extra 13% function a mixture of personally and company-held properties.
The research, relies on 794 on-line interviews with members of the National Residential Landlords Association (NRLA).
The report exhibits that the common proportion of a limited firm landlord’s portfolio held this manner has risen sharply—from 36% in Q1 2020 to 74% in Q2 2025. Most new purchases are now made through included autos, significantly amongst portfolio landlords with 4 or extra buy-to-let mortgages, 34% of whom maintain at the least one property in a limited firm.
Tax effectivity stays the principle driver, in line with the analysis, with regulation and the forthcoming Renters’ Rights Bill (RRB) prompting many to extend rents and rethink new funding.
However, Pegasus Insight says consciousness of specialist limited firm lenders stays comparatively low.
Pegasus Insight founder and director Mark Long says: “Limited firm possession has shifted from area of interest to mainstream in buy-to-let. Portfolio landlords, who are sometimes higher-rate taxpayers, discover the mannequin particularly engaging—and they’re sometimes essentially the most energetic debtors. That makes them a vital viewers for lenders and brokers.
“But our analysis exhibits that consciousness of the limited firm mortgage market remains to be patchy. Many landlords don’t know which lenders function in this area or the breadth of merchandise accessible.
“For advisers, that’s each a problem and a possibility. With incorporation gaining traction, lenders can increase their visibility and brokers can add actual worth by serving to purchasers navigate limited firm borrowing—with out straying into tax recommendation. Ensuring landlords are effectively supported will probably be important to sustaining buy-to-let exercise in the years forward.”
Earlier this month, a separate report discovered that one in five buy-to-let corporations arrange in the UK to date this 12 months are owned by worldwide landlords.
