73% of landlords believe at least one myth about limited company Buy to Let, new research shows

New research by Coventry for intermediaries reveals 73% of landlords still believe at least one common misconception about limited company Buy to Let (BTL). From misunderstood tax implications to inflated concerns of high costs, the findings reveal a persistent knowledge gap among landlords about limited company BTL, even as interest in the sector grows.

Coventry’s latest report, The broker’s guide to limited company BTL mortgages, highlights the most common myth – believed by 23% of landlords – is that limited company BTL mortgages offer fewer tax benefits, even though many landlords could benefit from lower corporation tax rates compared to personal income tax.

Meanwhile, 22% of landlords believe property transfers to a limited company are too costly. While costs such as stamp duty and legal fees may apply, the actual expense depends on the specific scenario and can be outweighed by longer-term financial advantages.

Other common misconceptions include the belief that limited company BTL mortgages are always more expensive than a typical BTL mortgage (22%) and that incorporation can impose excessive administrative burdens on a landlord’s business (21%). In reality, mortgage costs vary by product circumstance and admin tasks can be effectively managed by proper guidance.

Other key insights from the research include:

• 48% of landlords believe at least one tax or cost-related myth
• 21% believe the misconception that only large-scale landlords can benefit from incorporation
• 33% of landlords said understanding legal and tax implications was the biggest challenge when incorporating

Jonathan Stinton, Head of Intermediary Relationships at Coventry for intermediaries said:

“Interest in limited company BTL is growing, and more landlords are exploring incorporation as a way to structure their portfolios more efficiently and future-proof their investments. But our research indicates that many may be doing so based on false assumptions or outdated information.

“There are real benefits to incorporating, from accessing lower rates of corporation tax and retaining profits within the business, to making it easier to plan for succession or add shareholders in the future. For landlords looking to scale, a limited company structure can offer more control, flexibility, and long-term value.

“This is where brokers can make a real impact. By helping clients understand the full picture, brokers can become long term strategic partners. That kind of clarity builds confidence, simplifies complex decisions, and creates stronger relationships that last well beyond a single transaction.”

Coventry’s latest report, The broker’s guide to limited company BTL mortgages is available now.