New research suggests that close to two thirds of landlords expect their next buy-to-let purchase to be made through a limited company rather than in their personal name.
Figures from Paragon Bank indicate that the move away from individual ownership is set to continue, with younger and less experienced landlords leading the shift. The lender found that 63% of landlords plan to buy future rental properties using a special purpose vehicle (SPV).
According to Paragon, this change has been building for some time and shows no sign of slowing. Limited company ownership has become a common route for landlords looking to manage costs more effectively over the long term.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, explained that tax changes over the past decade have played a major role in shaping landlord behaviour. She noted that owning property through a company has steadily gained popularity as tax rules have become less favourable for personal ownership.
She added that with almost two thirds of landlords planning to buy through limited companies, the overall share of rental homes held in company structures is expected to rise further. This is especially likely as more landlords look to move properties they already own into a corporate setup.
Sedgwick also highlighted that newer landlords appear to be adapting more quickly. Many seem to recognise the potential advantages of limited company ownership early on in their property investment journey.
The research, which surveyed more than 500 landlords, shows clear differences between age groups. Interest in limited company ownership is strongest among those just starting out.
All landlords aged between 25 and 34 said they would purchase future buy-to-let properties through a limited company. This suggests that company ownership is now seen as the default option for the youngest investors.
Among those aged 35 to 44, the figure falls slightly to 82%, while 73% of landlords aged 45 to 54 said they would take the same approach.
Older landlords appear more cautious. Just over half of those aged 55 to 64 said they plan to buy through a company, while this drops to under half among landlords aged 65 to 75.
Paragon’s report, How Limited Company Ownership Is Becoming the New Normal, also points to further changes ahead. Around 32% of landlords said they plan to transfer properties currently held in their own name into a limited company in the future.
The lender’s analysis shows that limited company ownership has risen steadily over the past ten years. This trend closely follows tax reforms introduced in the mid-2010s.
In particular, the removal of full mortgage interest tax relief for individual landlords has had a lasting impact. As a result, many investors now see limited company structures as a more sustainable and tax-efficient way to run a rental portfolio.
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