There's been a sharp rise in landlords using limited companies, as changing tax rules and heavier regulation reshape the rental market, research reveals.
The findings from Pegasus Insight show that incorporation is gaining ground among those looking to protect margins and streamline operations.
Its latest Landlord Trends Report found that 22% of landlords now own at least one property inside a corporate structure.
A third of larger operators use both personal and company vehicles, while those already incorporated have placed around 70% of their homes within that framework.
Tax rules impact incorporation decision
The firm's director or founder, Mark Long, said: "Landlords are operating in a very different environment from that of a decade ago.
"With tax rules continuing to tighten and compliance demands rising, many now see incorporation as the most robust long-term way to run a lettings business."
He added: "But incorporation is not a simple win.
"It carries costs, introduces additional administrative responsibilities, and, crucially, needs to be considered carefully with a qualified tax adviser."
Limited company landlords
Portfolio size within companies has risen steadily and five years ago, the typical incorporated landlord held 6.3 properties in a company.
By Q3 2025, that figure had climbed to 10.5.
Overall portfolio size across mixed-status landlords has remained broadly steady at about 15 properties.
It marks a clear change in strategy as investors react to higher running costs and an ever-evolving regulatory landscape.
More landlords will incorporate
Mr Long said: "The Chancellor's decision in the recent Budget to introduce new higher 'property' tax bands of 22%, 42% and 47% for landlords who hold property in their own names from April 2027 is only likely to accelerate the move towards company structures.
"But it also risks penalising the very people who have made up the backbone of the PRS for around 30 years: smaller, long-standing landlords who have quietly provided good-quality homes without the resources or scale to absorb repeated policy shocks."
He adds: "Incorporation may well be the right answer for some, but government should be mindful that continually increasing the burden on individual landlords risks pushing more of them out of the sector entirely, at a time when the country can least afford to lose rental supply."
Landlords incorporating trend
To underline the growing trend for landlords to incorporate, research from Foundation Home Loans shows specialist buy to let activity is rising fast.
That's because more landlords are looking to diversify and adopt complex portfolio strategies.
One in 10 now holds a specialist loan product, while one in seven expects to secure one in the year ahead.
Among landlords with 20 or more properties, the figure rises to more than one fifth.
Strong company landlord demand
Demand is strongest among company landlords and multi-property operators, who point to rates, fees and turnaround times as the key reasons for choosing a lender.
Foundation's director of sales, Grant Hendry, said: "The latest data shows a market evolving rapidly towards greater sophistication.
"For instance, specialist buy to let requirements means one in seven landlords now plan to use a specialist loan in the coming year, and this trend is strongest among those already operating through limited companies.
"It reflects a sector that is thinking strategically about portfolio diversification, long-term value and the type of products they are going to require going forward."
Student landlords remain competitive
Simon Thompson, the managing director of Accommodation for Students, said: "For student landlords, the shift towards limited company ownership is no longer a niche strategy adopted by a handful of large operators.
"It is becoming the standard response to rising tax burdens, tougher regulation and the need to run a more resilient, futureproof lettings business."
He added: "For smaller student landlords, the decision may be less straightforward, but if tax rises continue and compliance gets tougher, incorporation will stop being optional for many.
"It will become the only way they can stay competitive."
