A growing share of landlords are turning to limited company structures to manage their rental portfolios, according to new research from mortgage lender Pegasus Insight.

The data shows that 20% of landlords now own at least one property via a limited company:

• 7% hold their entire portfolio through a limited company.

• 13% have a mix of individually-held and incorporated properties.

Among limited company landlords, the average share of their portfolio held in this way has more than doubled, rising from 36% in Q1 2020 to 74% in Q2 2025.

Pegasus says incorporation is increasingly the default choice at the point of new property purchases. Almost all landlords planning to buy in the next 12 months expect to do so through a limited company. The practice is most common among portfolio landlords (those with four or more buy-to-let mortgages), where 34% now have at least one incorporated property.

The trend comes against a backdrop of intensifying pressures on landlords, from rising taxes to the forthcoming Renters Rights Bill. Pegasus notes that incorporation continues to offer tax efficiency, particularly for larger and higher-rate taxpayers.

Mark Long, Director at Pegasus, commented:  “The incorporation model is especially attractive for portfolio landlords, who are typically higher-rate taxpayers and therefore more sensitive to tax changes. 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.”

He added that awareness of the limited company mortgage market remains uneven: “Many landlords don’t have a clear picture of which lenders are active in this space or the range of products available. Ensuring that landlords are fully supported in this segment will be crucial for sustaining buy-to-let activity in the years ahead.”