At Signature Specialist Finance Limited, we’re closely tracking the latest developments in the buy-to-let (BTL) sector to ensure our clients receive relevant, forward-thinking advice. Anew report highlights a significant shift in how landlords are structuring their property investments—and the numbers speak volumes.
Limited Companies Now the Preferred Route for Landlords
According to recent data from Foundation Home Loans, nearly 60% of landlords planning to purchase property in the next 12 months intend to do so through a limited company structure. This marks a notable rise in incorporation, with limited company ownership increasing from 36% in Q1 2020 to 66% in Q1 2025.
This approach is especially popular among portfolio landlords, who now own an average of 14.6 properties through a limited company—almost triple the 5.2-property average for those who invest in their personal names. Incorporation offers potential tax benefits and greater flexibility, making it an increasingly attractive strategy.
Growth in Specialist Property Investment
Landlords are also diversifying. The report found that:
- 20% of landlords now own at least one House in Multiple Occupation (HMO), rising to 25% among portfolio landlords.
- 6% of landlords own holiday let properties, which increases significantly among those with larger portfolios.
On average, landlords hold 3.6 HMOs and 1.6 holiday lets, respectively. Among landlords with 11 or more properties, 29% have HMOs, while 12% include holiday lets in their portfolio. These figures highlight a growing appetite for more specialist and potentially higher-yield investment types.
Strong Yields and Remortgage Activity
Despite a changing economic landscape, the market remains resilient:
- Average rental yields stand at 6.3%, just 0.2% below the 10-year high recorded in late 2024.
- 84% of landlords are currently making a profit—17% significantly so, and 67% report modest profits.
Even with rising costs, 80% of portfolio landlords (with four or more BTL mortgages) continue to report profitability.
Remortgaging is also expected to remain strong throughout the year:
- 38% of landlords plan to remortgage or carry out a product transfer in the next 12 months.
- On average, portfolio landlords anticipate refinancing three properties.
- Fixed-rate products remain popular: 32% favour a two-year fix, and 35% prefer a five-year fix.
Expert Advice Matters More Than Ever
These figures reflect a rapidly evolving market. As Grant Hendry of Foundation Home Loans notes, incorporation is no longer a fringe strategy—it’s now mainstream. Landlords are also branching out into more complex property types that require specialist financial solutions.
At Signature Specialist Finance Limited, we understand that today’s landlords need more than off-the-shelf products. Whether you’re incorporating, refinancing, or expanding into HMOs or holiday lets, our expert advisers are here to offer clear, personalised guidance and access to competitive, tailored mortgage options.
Looking to make your next property move or remortgage decision count?
Contact us today to speak to a specialist adviser who understands the market and your goals.
Source: Mortgage Soup
