Limited company structures becoming increasingly popular

Published on

38% of landlords will use limited companies to buy properties over the next year compared to 28% as individuals, according to new research commissioned by Precise Mortgages.

Among landlords with more than four properties the percentage buying new property via a limited company rises to 42% while among those with up to three properties it drops to 31%.

Landlords operating in London are the most likely to be planning to purchase through a limited company.

According to recent research by Precise Mortgages, 89% of brokers expect the number of landlords setting themselves up as a limited company to increase with the ability to continue to claim tax relief on mortgage interest seen as the main motivation.

Around 15% of landlords questioned intend to add to their portfolios over the coming year buying an average of two new properties, the BDRC study found. Around 23% of those planning to buy will add   three or more properties to their portfolio.

BDRC’s research found landlords with larger portfolios are significantly more aware of the Prudential Regulation Authority (PRA)’s lending criteria and portfolio application process changes. 45% of all landlords are aware of PRA changes but that rises to 67% among landlords with four or more buy-to-let mortgages.

However, 74% of those with larger portfolios say the changes have made it more difficult to secure buy-to-let finance, underlining the growing demand for specialist lenders.

Alan Cleary, managing director of Precise Mortgages, said: “Buying property within a limited company structure has become increasingly popular, particularly among larger professional landlords.

“Given the predicted rise in landlords switching to limited company status this year, we can expect this trend to continue.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Mortgage market bounce sparks adviser demand

The UK mortgage market is showing signs of renewed momentum as 2026 gets underway...

Houzecheck survey volumes jump 75% as intermediary partnerships gain pace

Proptech surveying platform Houzecheck has reported a sharp increase in activity during 2025, with...

Mortgage activity stalls as buyers sit tight

Mortgage-led housing activity lost momentum at the end of last year as uncertainty around...

Foxtons financial services arm lifts revenues

Foxtons has reported double-digit growth in its financial services division in 2025 driven by...

Stonebridge appointment to drive network expansion

Stonebridge has appointed Liz Obee as national recruitment manager as it looks to build...

Latest publication

Other news

What could shape buy-to-let in 2026 and the impact for advisers

As we move slowly into 2026, the buy-to-let market feels more settled than it...

If pets are protected, why not families?

I’ve heard many advisers say that protection insurance has ‘gone to the dogs’, but...

Q&A: Behind the Foundation rebrand

As Foundation unveils its new brand identity dropping ‘Home Loans’ from its name and...