Limited company landlords accounted for a record 43 percent of buy-to-let house purchases in 2025, up sharply from 35 percent in 2024. The shift has accelerated since Section 24 tax changes took effect in 2017, when incorporated purchases made up just 7.5 percent of BTL completions.

Nearly 50,000 new property SPVs formed in 2025

Analysis by Paragon Bank shows 49,029 companies were incorporated for buying and selling real estate last year, up from 45,775 in 2024. Some 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 the previous year and just 1.3 percent in 2018. Lender competition for limited company business has intensified, with several providers cutting rates specifically for incorporated borrowers.

Younger landlords lead the shift

A Paragon survey of over 500 landlords found 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.

The generational divide is pronounced. 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 with age – reflecting that newer entrants are incorporating from day one. Many are also seeking below market value property to maximise returns within corporate structures.

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.”

This follows Residential Landlord’s analysis showing tax rises prompting rent increases, as landlords seek to offset the impact of Section 24 restrictions on mortgage interest relief.

Opinion

The numbers confirm what many suspected: Section 24 has permanently reshaped how landlords structure ownership. With 43 percent of BTL purchases now through companies – and 57 percent among younger landlords – incorporation is no longer alternative strategy but mainstream practice. For those still holding personally, the maths grows harder each year. The question is no longer whether to incorporate, but whether the transition costs are worth the long-term savings.

Sources: Paragon Bank, Companies House
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