The UK buy-to-let market is “undergoing one of its biggest structural changes in decades”, according to Joseph Lane, mortgage broker and property investor at Mortgage Lane.
Lane suggested that landlords have entered a “permanent reset” in how they purchase, finance, and build property portfolios.
Specifically, he referenced research from Paragon Bank which indicated that 43 per cent of all mortgaged BTL purchases completed in Britain during 2025 were made through limited companies, a rise on the 35 per cent in 2024 and the sub-8 per cent in 2018.
While the statistics may initially appear to reflect growing interest in tax efficiency, Lane said the data reveals a “behavioural shift” which is reshaping the property investment landscape.
He explained that landlords are increasingly treating property ownership less as a passive investment strategy and more as a commercial operation requiring long-term planning, structured borrowing, and business-level financial decisions.
“The landlord of 2026 is very different to the landlord we saw a few years ago,” Lane detailed.
Additionally, Lane stated that, while limited company BTL mortgages were once viewed largely as specialist products used by investors with substantial portfolios, in 2026 that distinction may be disappearing.
“The limited company BTL market is experiencing one of the biggest structural shifts we’ve seen within property finance. Specialist lending is fast becoming mainstream,” he said.
Lane pointed out this coincides with years of pressure facing landlords which has led to them approaching their property more commercially.
“I believe that interest in borrowing via a limited company will continue to grow over the next few years, although it’s important to note it’s not suitable for all landlords,” he stated.
I believe structure, taxation, and long-term planning increasingly matter as much as mortgage pricing
One of the more unexpected trends he has witnessed in recent years is the influence of online forums and social platforms on borrowing decisions.
“One of the most common mistakes I see is landlords incorporating because they have heard online that it’s a no-brainer,” he explained.
“For some people it absolutely makes sense. For others, personal ownership may remain more appropriate.
“Basic-rate taxpayers holding one or two properties may not automatically benefit from incorporation.”
Looking ahead, Lane expects limited company borrowing to continue to grow, stating the UK housing market has “entered a different era”.
“I believe structure, taxation, and long-term planning increasingly matter as much as mortgage pricing,” he explained.
“The first question is no longer ‘what’s the cheapest rate available?’, it is becoming ‘what ownership structure aligns with my long-term objectives?’.”
tom.dunstan@ft.com
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