The buy to let sector is being reshaped by a younger wave of landlords choosing company ownership from day one, research reveals.
The findings from Paragon Bank shows limited companies are no longer a niche option but a default starting point for many new investors.
A survey of more than 500 landlords by Paragon found almost one in three landlords now hold rental homes solely through a limited company.
A further 36% combine corporate vehicles with personal ownership, meaning around two thirds have established at least one special purpose vehicle for investment purposes.
Mitigating landlord tax changes
Louisa Sedgwick, Paragon's managing director of mortgages, said: "In a bid to mitigate the impact of tax changes introduced in the latter half of the previous decade, the last 10 years has seen more and more landlords opt to hold their buy to let properties in limited companies.
"Interestingly, our research shows that younger and newer landlords are more likely to structure their portfolios this way and do so earlier on in their landlord careers."
She added: "I think that these landlords benefit from more advice and education on the benefits and key considerations than those who came before them.
“With some of our older, more experienced landlords perhaps eyeing retirement, helping the next generation of landlords to succeed is vital so this support can only be a good thing."
Landlord age crucial
The findings suggest that age plays a decisive role in how portfolios are structured.
Among landlords aged 25 to 34, 57% of homes are owned within companies, with the remainder split between mixed arrangements.
In the 35 to 44 category, corporate holdings account for 46% of properties, while mixed ownership remains common.
The trend for incorporation weakens steadily as landlords get older.
New landlords are keener
Experience levels tell a similar story and for those landlords who have been active for five years or less, they hold 80% of their portfolios in company structures.
Among those, there's a relatively small proportion using individual names or other arrangements.
That share drops sharply among landlords with longer track records, falling to 40% for those with six to 10 years in the market.
It declines further among more established operators and for landlords with more than two decades behind them have the lowest proportion of SPV ownership.
Specialist BTL products
Alongside incorporation, landlords are also moving further into specialist buy to let as portfolios become more complex and professionally managed, Foundation Home Loans says.
Its research shows that one in 10 landlords already holds a specialist product such as an HMO or semi-commercial loan, rising to more than one fifth among those with 20 or more properties.
Demand is strongest from portfolio and limited company operators, with speed, pricing and lender flexibility now outweighing brand loyalty when finance decisions are made.
Grant Hendry, the lender's director of sales, said: "The latest data shows a market evolving rapidly towards greater sophistication, with landlords thinking strategically about diversification, long-term value and the types of lending they will need going forward."
Student landlords starting out
The managing director of Accommodation for Landlords, Simon Thompson, said: "For student landlords in particular, the findings underline how quickly the sector is evolving.
"With higher borrowing costs, tighter regulation and greater scrutiny from local authorities, the structural decisions made at entry can shape returns for decades."
He added: "Student landlords are often running businesses with higher turnover, higher compliance costs and more active management than the wider buy to let sector.
"Starting out in the right structure can make a material difference to resilience for many of them.”
