The Intermediary – November 2025 - Flipbook - Page 72
BUY-TO-LET
Opinion
The direction of
travel is set
I
f you want to understand
where the buy-to-let (BTL)
market is heading, look no
further than limited company
lending. For all the noise
about landlords leaving the
sector, the real movement is not out
of BTL, but deeper into it – through
more professional structures, larger
portfolios and smarter financial
management.
The latest data from both
Moneyfacts and Fleet’s own Q3 2025
Rental Barometer underlines this
point: the limited company market
isn’t just expanding, it’s becoming the
new normal.
Moneyfacts data shows the choice
of fixed-rate BTL mortgages available
to limited companies has more than
doubled in just two years. There are
now 1,730 fixed options available,
compared to only 841 in October 2023.
That’s a remarkable rate of growth
and a clear signal of how lenders, such
as Fleet, are responding to sustained
demand from landlords operating
through corporate vehicles.
Rates have been improving over
the same period. The average 2-year
fixed rate for a limited company BTL
is now 5.04%, down from 6.53% two
years ago and lower than 5.54% a year
ago. The 5-year average now stands at
5.50%, down from 6.69% in October
2023. The combination of increased
choice and lower pricing shows this
is not a niche market anymore – it’s
core lending for a professionalised
landlord base.
Our Q3 Rental Barometer paints
the same picture. Limited company
borrowing accounted for 81% of
all applications we received in
the quarter, compared to 19% for
individual landlords.
That doesn’t happen by chance. It
reflects a structural shi that began
several years ago when tax changes
gradually eroded mortgage interest
relief for individual landlords. Since
then, the professional landlord sector
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The Intermediary | November 2025
has steadily moved towards the limited
company model for both financial and
operational reasons.
This trend looks unlikely to reverse.
The upcoming Budget has already
sparked speculation about possible
new taxes on rental income or changes
to how landlords are treated in the
personal tax system. Even if such
measures were introduced, they would
likely reinforce the move towards
limited company ownership rather
than hinder it.
If anything, a tax policy that
increases the cost of holding property
in a personal name would simply
accelerate the existing direction of
travel. Were it not for the Stamp
Duty costs involved in transferring
existing properties from individual
to company ownership, many more
landlords would already have made
the switch.
Not just a hobby
We were founded on the belief that
this was where the market was
heading – towards a more professional
landlord base operating through
limited companies – and that belief
has been borne out time and again.
When we launched, limited
company lending was still considered
a specialist segment of BTL. Today,
it’s undoubtedly the norm, driving
innovation and competition among
lenders, and giving landlords more
flexibility and control over how they
run their portfolios. What began
as a tax-efficient way of managing
properties has evolved into the
preferred structure for serious
investors looking to build and manage
property businesses.
For advisers, this shi is of course
significant. The profile of the
landlord client you see is changing.
For example, more than 61% of
applications to Fleet now come from
landlords with four or more buy-to-let
mortgages, and almost a quarter are
from those with 15 or more.
WES REGIS
is national account manager
at Fleet Mortgages
These are not hobbyists or
accidental landlords; they are running
businesses that require tailored and
specialist mortgage advice, robust
funding options, and long-term
relationships with lenders who
understand the complexities of limited
company ownership.
Advisers are therefore working with
lenders such as Fleet that specialise
in this part of the market – that not
only offer competitive products, but
also understand the structuring,
underwriting and regulatory nuances.
For all the media chaer about
landlords exiting the sector, our data
tells a very different story. Yields
remain strong – 7.5% on average
across England and Wales – rents are
continuing to rise, and landlords are
consolidating and growing.
Most landlords are not leaving the
market, they are evolving within
it – refinancing, incorporating,
or expanding their holdings to
maintain profitability and efficiency.
The appetite to stay invested in
property remains high – it’s just
being expressed in more structured,
professional ways.
Limited company lending is not
just a reaction to policy changes; it’s a
reflection of the long-term maturity
of the sector. Landlords are running
portfolios like the businesses they
are, and lenders that support that will
continue to be central to their success.
Advisers who recognise this evolution
and work with specialist lenders will
be well placed to help their clients
navigate a more sophisticated phase of
the market.
The direction of travel has been set,
and it’s further into limited company
lending, professionalisation and longterm growth. ●
