If you’re a landlord wondering where the buy to let market is heading in 2026, The Mortgage Works’ latest landlord research offers a useful snapshot, particularly for those investing through a limited company structure. Across the wider private rented sector, confidence has softened, but limited company landlords still appear more active, more leveraged and more growth minded than individual investors.
According to The Mortgage Work’s (TMW) Q1 2026 data, overall landlord confidence has dipped year on year. The proportion rating the prospects for their own lettings business as “good” or “very good” fell from 31% to 27%, confidence in rental yields eased from 35% to 31%, and optimism around capital gains dropped from 18% to 13%. [btl-barome…er-q1-2026 | PDF]
That softer mood is showing up in portfolio intentions too. Across the market, 42% of landlords plan to sell at least one property in the next 12 months, while only 8% intend to buy. At the same time, 65% have increased rents in the last year, suggesting landlords are still actively managing margins even in a more cautious environment.
However, the picture changes when you look specifically at limited company landlords.
Limited company landlords are still more active
TMW’s Q1 2026 report shows that limited company landlords remain more confident than individual landlords in several key areas. For example, 31% rate the prospects for their own lettings business positively, compared with 26% of individual landlords, and 31% are positive about rental yields versus 26% of individuals. [ltd-compan…rt-q1-2026 | PDF]
More importantly, they are still more likely to make acquisitions. 22% of limited company landlords say they intend to buy in the next 12 months, compared with just 4% of individual landlords. That matters because it suggests incorporation is still strongly associated with a more expansion-focused, investment-led mindset.
This is reinforced by borrowing behaviour. 76% of limited company landlords use borrowing to fund their portfolio, compared with 50% of individual landlords. They also hold a much larger number of buy to let loans on average, 9.7 mortgages versus 4.1 for individual landlords.
Remortgaging looks set to be a major theme in 2026
For landlords reviewing their portfolio finance this year, one of the standout findings is the likely level of refinance activity. Among limited company landlords, 49% expect to remortgage or complete a product transfer on at least one property in the next 12 months. TMW’s data also indicates that 50% of those remortgages and product transfers are expected to be in a limited company structure.
That makes 2026 a potentially important year for landlords to review:
- portfolio loan to values,
- monthly cash flow,
- fixed rate expiry dates,
- limited company borrowing options, and
- whether their current structure still supports their long-term investment plans.
For many portfolio landlords, this is not just about chasing a lower rate. It is also about keeping the portfolio efficient, protecting yield and ensuring future purchases remain viable.
Portfolio size, yields and profitability remain strong
The average landlord portfolio across the wider market now stands at 7.3 properties, with a typical gross rental yield of 6.5%. Just over half of landlords have at least one buy to let mortgage, and among those who do, the average number of loans held is 5.7.
Limited company landlords, though, are operating at a different scale. Their portfolios average 15.3 properties, with an average portfolio value of £3.2 million and average gross rental income of £184,000 per year. Their typical yield is 6.8%, slightly ahead of the 6.4% seen among individual landlords.
In profitability terms, the data is encouraging. 77% of limited company landlords report making a profit, while 15% break even and 8% make a loss.
Why limited company structures still matter
One of the most interesting findings in the wider report is that among landlords planning to buy, 64% intend to purchase through a limited company, and 44% say they plan to use buy to let finance for their next purchase.
That does not mean a limited company is automatically the right route for every landlord. But it does show that incorporation is still central to how many investors are thinking about tax efficiency, mortgage strategy, portfolio growth and long-term planning.
TMW’s limited company landlord report also shows that 41% hold their entire rental portfolio in a limited company, while 59% have a mix of personally owned and company-owned properties.
In other words, many landlords are not choosing between one route or the other in absolute terms, they are building blended structures over time.
Regional yield trends are worth watching
TMW’s regional snapshot suggests that yields continue to vary significantly by area. Among the regions covered in the report, average yields were highest in the North West at 7.1%, followed by Wales at 6.9% and the North East at 6.8%. At the other end of the scale, Central London averaged 5.3%. The report notes that landlords may operate in more than one region, so these figures should be read as indicators rather than a simple location league table. [regional-s…ot-q1-2026 | PDF]
For landlords weighing up their next move, that reinforces an important point: the right buy to let mortgage strategy is not just about product selection. It is also about matching borrowing structure to portfolio goals, property type, geography and expected yield.
Final thoughts
The headline message from the research is clear: the wider buy to let market is more cautious, but limited company landlords remain comparatively active, better geared for growth and more likely to refinance or purchase.
For landlords planning a purchase, remortgage or limited company buy to let review in 2026, now is a good time to step back and assess whether your current finance still supports your strategy.
At Munro Mortgages, we help landlords make sense of the mortgage side of that decision, whether you’re buying through a company, restructuring existing borrowing, or reviewing options across a growing portfolio.
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