Limited company landlords accounted for a record 43 percent of buy-to-let house purchases in 2025, up from 35 percent in 2024, according to analysis by Paragon Bank. The shift towards incorporation has accelerated dramatically since tax changes in 2017, when limited companies made up just 7.5 percent of BTL completions.
Nearly 50,000 new property companies formed
Companies House data shows 49,029 businesses were incorporated for buying and selling real estate in 2025, up from 45,775 the previous year. In total, 274,315 companies are now active in this sector - more than the entire hospitality industry.
The proportion of buy-to-let remortgages completed through limited companies also rose, reaching 11.5 percent in 2025 compared with 10 percent in 2024 and just 1.3 percent in 2018.
This follows LK’s recent analysis showing record CGT receipts alongside rising company formations, suggesting landlords are simultaneously exiting personal ownership while others incorporate or enter the market through SPVs.
Younger landlords driving the shift
A Paragon survey of over 500 landlords found that 29 percent now hold properties exclusively via limited companies, while a further 36 percent split ownership between corporate entities and personal names. Two-thirds of landlords have created at least one Special Purpose Vehicle for their investments.
The generational divide is stark. Among landlords aged 25-34, 57 percent of properties are held in limited companies. This falls to 46 percent for those aged 35-44, declining further as landlord age increases.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “The continued rise in limited company buy-to-let activity reflects the structural shift we’ve seen in the market since the 2017 tax changes. As landlords have adjusted to being taxed on gross rental income, incorporation has become an increasingly attractive and often necessary route to maintain profitability.”
Sedgwick added: “Limited company structures can potentially offer more efficient tax treatment but also provide greater flexibility for portfolio growth and long-term planning. The record share of purchases and remortgages completed through limited companies in 2025 underlines how deeply this trend is now embedded in the sector.”
The findings align with recent lender activity targeting limited company landlords, with The Mortgage Works among those cutting rates for incorporated borrowers.
What this means for landlords
- If you’re still holding personally: The tax advantages of incorporation are now well-established - but transferring existing properties triggers CGT and stamp duty. New purchases are easier to structure via SPV.
- If you’re under 45: You’re part of a generation where limited company ownership is becoming the default. Lenders increasingly cater to this segment.
- Watch for: More competitive limited company mortgage products as lenders compete for this growing market share.
- Portfolio planning: With 65% of landlords now using SPVs, accountants and mortgage brokers familiar with company structures are essential.
- Bottom line: The 2017 tax changes have permanently reshaped landlord ownership structures. Incorporation is no longer alternative - it’s mainstream.
Editor’s view
The numbers tell a clear story: Section 24 worked exactly as intended, pushing landlords into company structures. Whether that’s good policy is debatable, but the shift is now irreversible. For new landlords, incorporating from day one is increasingly the obvious choice. For existing landlords trapped in personal ownership, the maths is harder - but watching 43 percent of competitors benefit from better tax treatment concentrates the mind.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 2 March 2026
Sources: Paragon Bank, Companies House
Related reading: Private landlord numbers fall as record CGT receipts and company formations signal sector shift
