Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Limited Company Buy-to-Let Landlords Now Mainstream, Data Shows
Limited company ownership has become the main model among landlords with larger buy-to-let portfolios, according to industry figures reported by The Negotiator. Data from portfolio management group Lendlord shows that 45.1% of buy-to-let ownership is now through a company, while 54.9% remains privately held.
Among landlords with one to three properties, 67.1% of ownership is private. However, for those with 20 or more properties, 57.6% now hold them within a limited company structure. Lendlord reports that company ownership first becomes the larger share in the 11 to 20 property band.
The analysis highlights regional differences, with the North East identified as the most corporate market, where 53.5% of buy-to-let properties are company-owned. Company ownership is also more established in Yorkshire & Humberside and Scotland.
Recent years have seen private landlords affected by tax changes, including restrictions on mortgage interest relief and additional Stamp Duty charges. In contrast, landlords operating through limited companies can treat mortgage interest as an expense and have profits taxed under corporation tax rather than personal rates. However, company landlords face extra reporting requirements.
The report also notes a difference in mortgage rates by ownership type. The typical buy-to-let mortgage rate for private landlords is 4.76%, while company landlords pay an average of 6.44%.
These trends are relevant for letting agents and inventory clerks, as the shift towards company ownership may impact portfolio management, compliance, and reporting requirements across the UK property sector.
Source: The Negotiator