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When you’ve been in the buy to let business for as long as I have, it takes a lot to surprise me. However, even I admit I’ve been taken aback by the growth in the number of landlords choosing to run their rental business as a limited company in recent years.

According to the latest data from estate agents Hamptons1, there were a record 66,587 new companies set up to hold buy to let properties in 2025 – an 8% increase from 2024 and a staggering 363% rise over the past decade! Buy to let companies were ranked among the most common types of new business created in 2025 and there are now more than 443,000 companies registered with Companies House. Just to give you a bit more context, there were almost twice as many buy to let companies set up in 2025 than take-away food shops, over two-and-a-half times more than hairdressers and beauty treatments, and nearly three-and-a-half times more than cafés and unlicensed restaurants!

But while the growing professionalisation of the market has been reported extensively in the trade media, what hasn’t been so well covered is how the profile of limited company landlords is becoming increasingly different to their more traditional ‘individual’ counterparts.

Which is why Pegasus Insight’s latest Landlord Trends report2 makes for such fascinating reading. For example, did you know that portfolios held by limited company landlords are, on average, nearly, three times as large as those held by individual landlords? Or that limited company landlords are more than twice as likely to own at least one HMO property? Or that almost four times as many limited company landlords say they intend to purchase a new property?

However, it was another stat in the report that really caught my attention - limited company landlords are much more reliant on buy to let funding than individual landlords.

Whatever the reasons for the increase in the number of landlords incorporating their rental business – whether it’s mounting taxes, rental reforms or higher mortgage rates – what isn’t in dispute is that there are a lot of landlords out there who’ll be looking for help in placing cases in the future. So, if you’re a broker with a limited company landlord, it’s good to know you can rely on a lender with clear upfront criteria designed to meet their needs.

Here at ModaMortgages, we offer competitive products for a variety of landlords, including limited company investors, backed up by a quick efficient, service and a dedicated, straight-talking support team.

We allow up to four directors and applicants only need to cover 75% minimum shareholding on an application. We lend on a variety of properties, including HMOs and MUFBs up to six bedrooms or units, and we accept simple layered limited companies, typically where landlords operate through a special purpose vehicle linked to one other company.

To find out more, take a look at our product and criteria guides.

If you’ve got a question and would prefer to speak with a member of our team, contact your business development manager or call us on 01978 803333.

Sources:

1 https://www.hamptons.co.uk/articles/record-number-of-buy-to-let-companies-set-up-in-2025#/

2 Pegasus Insight Landlord Trends Report Q4 2025