New research commissioned by Foundation Home Loans and carried out by Pegasus Insight has uncovered a growing trend among landlords opting for limited company structures to manage their buy-to-let investments.
According to the findings, around 20% of all landlords currently hold at least one buy-to-let mortgage through a limited company. This figure increases notably among portfolio landlords, where 30% report holding at least one property in a corporate structure.
This shift towards incorporation highlights how landlords are adapting their investment strategies to suit the evolving tax and regulatory landscape. Limited company ownership is becoming increasingly popular as landlords seek more efficient ways to manage their portfolios and maximise returns.
One of the standout findings from the research is the significant increase in the proportion of portfolios held within limited companies. In early 2020, company landlords held just 36% of their total properties in a corporate structure. As of the second quarter of 2025, this figure has soared to 74%.
This more than doubling in just five years demonstrates how quickly the market has adapted. The ability to offset mortgage interest against rental income, a benefit only available within limited companies, has been a key driver of this change, especially since tax relief for individual landlords was scaled back.
Limited company ownership is even more prevalent among larger landlords. The research shows that 34% of portfolio landlords—defined as those with multiple properties—have at least one incorporated asset in their portfolio.
In addition, 7% of all landlords have gone a step further and fully incorporated their entire portfolios. This means that every one of their rental properties is owned through a company structure. A further 13% are managing a blend of personal and company-owned properties, suggesting a transitional phase for many investors.
When looking at future intentions, the preference for company structures remains strong. Of those planning to purchase more properties, 63% said they would choose to do so through a limited company.
In contrast, just 29% of landlords said they would purchase their next property in their personal name. Another 6% indicated they would decide on a case-by-case basis, depending on market conditions and personal circumstances at the time of purchase.
What’s particularly telling is that none of the landlords who already own properties through a limited company intend to make their next investment outside of that structure. This signals a long-term commitment to incorporation among those who have already made the switch.
The trend is mirrored in the refinancing space. Landlords with larger portfolios—typically those owning four or more buy-to-let properties—are significantly more likely to refinance using a limited company. The figures show 30% of portfolio landlords choose this route, compared with just 8% of smaller, consumer landlords.
Landlords arranging limited company finance are looking for more than just low interest rates. The most important features they consider when selecting a lender include minimal fees, flexibility to make overpayments, and strong customer service.
This growing demand for tailored mortgage products suggests that today’s landlords are becoming more sophisticated in their approach. As their financial needs evolve, they are placing higher value on transparency, flexibility, and support from lenders.
Grant Hendry, Director of Sales at Foundation Home Loans, noted the accelerating pace of limited company adoption among landlords, particularly those with extensive portfolios. He described the move as a strategic response to the increasingly complex tax environment and a way to build longer-term financial resilience.
He also emphasised the role of lenders in supporting this shift. As more landlords choose to restructure, refinance, or expand through limited companies, lenders need to provide products that reflect these more complex borrowing needs.
Foundation Home Loans has responded to this demand by offering a range of products tailored for limited company borrowers, aiming to help landlords manage their portfolios more efficiently, regardless of their investment stage.
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