The private rented sector has moved decisively toward incorporated ownership structures over the past several years, and new lender data shows the trend accelerating rather than levelling off.
Paragon Banking Group reported that 43% of all mortgaged buy-to-let purchases completed in Britain during 2025 were made through limited companies, up from 35% in 2024 and under 8% in 2018. Fleet Mortgages' own Q2 2026 Rental Barometer shows 78% of its buy-to-let lending now goes to corporate borrowing vehicles, against 22% for private individuals, though this reflects Fleet's specialist-lender client base rather than the market as a whole.
Limited company share of UK buy-to-let purchases
| 2018 | <8% | |
| 2024 | 35% | |
| 2025 | 43% | |
| 2026 (Q2) | 78%* |
*Fleet Mortgages Q2 2026 figure covers Fleet's own lending only, not the whole market -- shown separately as it is not directly comparable to the market-wide Paragon figures above.
Source: Paragon Banking Group (2024/2025 market share); Fleet Mortgages Q2 2026 Rental Barometer.
Portfolio size is growing alongside the shift in structure. Fleet reported its average borrower now holds 16 investment properties, up from 10 a year earlier. Separately, Pegasus Insight's Landlord Trends research found the average landlord portfolio across the wider market stands at 7.3 properties, but landlords specifically using limited company structures average 15.3 properties, up from 12.8 at the end of 2025, a gap that itself illustrates how incorporation correlates with larger-scale, more business-like operation.
Why landlords are incorporating
The primary driver remains tax treatment. The phased removal of mortgage interest tax relief for individually-held property, completed in the 2020-21 tax year, significantly increased the effective tax burden on higher-rate taxpayers holding buy-to-let property in their own name. Limited companies are not subject to the same restriction, instead paying corporation tax on profits, which has made incorporation the default route for new portfolio growth rather than a niche specialist option.
What this means for lending
Trade press coverage this week highlighted a related effect: as landlord structures professionalise, demand is shifting toward lenders and brokers who understand specialist and portfolio lending criteria, rather than mainstream high-street buy-to-let products built around individual borrowers. This has implications for anyone comparing mortgage broker options for a limited company or portfolio purchase, since not all brokers have equal depth in this segment.
Disclaimer: This article summarises third-party lender and industry research and is for general information only. It does not constitute financial, tax or investment advice. Landlords considering incorporating an existing portfolio should seek advice from a qualified accountant, since transferring personally-held property into a company structure can trigger Stamp Duty Land Tax and Capital Gains Tax liabilities.
