Nearly two thirds of landlords expect their next buy-to-let purchase to be made through a limited company, according to recent research by Paragon Bank. This ongoing shift from personal ownership to corporate structures is particularly driven by younger and newer landlords, reflecting changes in taxation and investment strategies within the UK rental market.

Growing preference for limited company ownership

Paragon Bank’s study reveals that 63% of landlords plan to acquire future rental properties using specialist purchase vehicles (SPVs), commonly limited companies. This trend marks a continuation of a decade-long move away from holding buy-to-let properties in personal names, largely influenced by tax reforms introduced in the mid-2010s.

Louisa Sedgwick, Paragon’s managing director of mortgages, explains that the popularity of limited company ownership has increased steadily due to changes in taxation. She notes, “Nearly two thirds of landlords intend to make future purchases through limited companies, so we expect the overall proportion of property held within a company structure to increase steadily in the coming years, particularly when you include those landlords who will incorporate existing property from personal name.”

Sedgwick also highlights the adaptability of the next generation of landlords, stating, “It’s encouraging to see that they will continue to adapt in this way, particularly the next generation of landlords who seem to have realised the potential benefits of this ownership structure early in their lettings business careers.”

Age differences in company ownership plans

The research, which surveyed over 500 landlords, shows significant variation in the appetite for limited company ownership across different age groups. Among landlords aged 25 to 34, 100% intend to purchase through a limited company. This proportion decreases to 82% for those aged 35 to 44 and further to 73% for landlords aged 45 to 54.

Older landlords are more cautious about adopting company structures, with 54% of those aged 55 to 64 and 48% of landlords aged 65 to 75 planning to use SPVs for future purchases. These figures suggest that younger landlords are more inclined to embrace limited company ownership as a standard approach to property investment.

Restructuring existing portfolios

In addition to future purchases, the Paragon report titled How limited company ownership is becoming the new normal indicates that 32% of landlords intend to transfer properties currently held in their own name into a limited company structure at some point. This reflects a broader trend of restructuring portfolios to benefit from the perceived advantages of corporate ownership.

The shift towards limited companies is closely linked to tax reforms, particularly the removal of the ability to offset mortgage interest against rental income. Many landlords have concluded that owning property through a company offers a more tax-efficient and sustainable long-term strategy.

Implications for UK landlords and agents

For landlords and letting agents, understanding the growing preference for limited company ownership is essential. This shift affects financing options, tax planning, and portfolio management. Limited companies often provide access to specialist mortgage products and may offer benefits such as reduced income tax liabilities on rental profits compared to personal ownership.

However, landlords should also consider the administrative and compliance requirements associated with limited companies, including company accounts, corporation tax, and potential capital gains tax implications on disposal. Professional advice is recommended to navigate these complexities effectively.

Looking ahead

As the buy-to-let market evolves, the trend towards limited company ownership is expected to continue, particularly among newer and younger landlords. This development underscores the importance of staying informed about legislative changes and market conditions that impact property investment strategies.

In line with supporting landlords and agents, The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest at the TLA website.