With three-quarters of buy-to-let purchases now going through limited companies, the way landlords structure their investments has fundamentally changed
How landlords structure buy to let investments has become a more central consideration for brokers in recent years. Limited companies now account for the majority of new purchases, overtaking personal ownership as the preferred route for many investors.
Hamptons research indicates this figure reached around three-quarters of all acquisitions in 2025, up from roughly half just four years earlier. This reflects a clear change in how landlords are approaching portfolio structure.
From the conversations we’re having at Rely, this is no longer something considered only by larger landlords. More investors are thinking carefully about how they structure their property businesses from an earlier stage, particularly when they have ambitions to grow over the longer term.
For brokers, this is now part of the core conversation. Ownership structure sits alongside pricing, leverage and rental cover in shaping how a case is approached, particularly as more clients look to build and expand their portfolios.
Why tax treatment is driving the shift
Tax treatment remains a key driver, specifically how mortgage interest is handled. Since the full implementation of Section 24, landlords holding property in their own name are no longer able to deduct finance costs from rental income. Instead, they receive a basic-rate tax credit set at 20%, regardless of their overall tax position.
Limited companies continue to operate under different rules, allowing mortgage interest to be offset as a business expense before corporation tax is calculated. For landlords with borrowing, this distinction can materially alter the post-tax position, particularly for those paying higher or additional rates of income tax.
This helps explain why incorporation has become more common. When properties are held in a personal name, tax is calculated on gross income rather than on profit after finance costs, which can place pressure on cash flow as borrowing costs rise or portfolios expand. A company structure can offer a more consistent framework for managing those costs.
While neither lenders nor brokers are tax advisers, brokers increasingly need a working understanding of the considerations driving these discussions. That doesn’t mean providing tax advice, but recognising when a client would benefit from speaking to a qualified tax professional before deciding on the most appropriate ownership structure.
There are wider considerations as well. Profits retained within a company are subject to corporation tax rather than income tax, which can offer additional headroom for reinvestment over time. This has become particularly relevant for landlords looking to grow, refinance or reposition assets without needing to draw income immediately.
How incorporation is changing portfolio strategy
In practice, this is leading to a more deliberate approach to portfolio building. Incorporation often involves the use of special purpose vehicles that separate property activity from personal finances, bringing greater clarity around performance, borrowing and future planning, while also supporting more complex funding strategies.
It is also reflected in who is incorporating. While established portfolio landlords were early adopters, newer entrants are increasingly choosing company structures from the outset, particularly where leverage forms part of the strategy.
This is also influencing behaviour across the sector. Incorporated landlords are more likely to treat property as an active, ongoing business, reviewing rental levels, refinancing and acquiring with a clearer commercial focus. Pegasus Insight Landlord Trends Q1 2026 data shows incorporated landlords tend to operate at a larger scale, holding an average of 15.9 properties compared to 4.9 for those investing in their own name.
The implications go beyond product selection. Cases are often more layered, involving multiple properties, entities or funding routes.
Conversations around structuring are becoming a more central part of the process. As ownership models become more varied, brokers are increasingly helping clients navigate a wider range of considerations when planning portfolio growth and future investment strategies.
At the same time, it is important to recognise that a limited company is not universally the right answer. Landlords with lower levels of borrowing, or those who fall into the basic rate tax band, may find that holding property personally remains a simpler and more cost-effective route. There are also additional administrative and compliance considerations that come with running a company, which need to be factored into any decision.
Limited companies aren't right for everyone
What is clear, however, is that incorporation is now embedded within the buy to let market. The growing prevalence of limited company ownership points to a sustained change in investor behaviour rather than a short-term response. It reflects a sector that is becoming more commercially focused and more geared towards long-term portfolio management.
Increasingly, clients are looking for support that goes beyond product selection and reflects the wider objectives they have for their property businesses.
From my perspective, the most successful broker-client relationships are built on a strong understanding of a landlord’s long-term objectives. As limited company ownership becomes more common, brokers who understand the factors shaping these decisions will be better placed to support their clients and identify the most appropriate funding solutions.
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