New research from a leading bank reveals that younger landlords are driving the rise in buy-to-let properties held within limited companies. Over the past decade, many new entrants have adopted corporate structures from the outset.

A survey of more than 500 landlords for the bank’s report How limited company ownership is becoming the new normal shows that 29% now hold all of their properties in a limited company. 

Another 36% combine personal and corporate ownership, meaning nearly two-thirds of landlords operate at least one special purpose vehicle.

The trend is strongest among younger landlords as in the 25–34 age group, 57% of properties are held in limited companies, with the remainder split between corporate and personal ownership.

Among landlords aged 35 to 44, nearly half of properties—46%—are held in limited companies, while another 39% are split between corporate and personal ownership.

The same generational divide emerges when looking at market experience. Those with five years or less in the sector overwhelmingly favour corporate structures, with 80% of their portfolios held in limited companies. Just over 11% remain in personal names, 7.5% are mixed, and 1% are managed through limited liability partnerships.

By contrast, the longer a landlord has been active, the less likely they are to operate through a company. The share of portfolios held in limited companies drops to 40% among those with six to 10 years’ experience, 21% for landlords in the market for 11 to 20 years, and only 16% for those with more than two decades behind them.

The managing director of mortgages at the bank, 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.

“This is something we’ve seen more of and recent enhancements to our mortgage application system are supporting these landlords.

“We’ve streamlined applications for simple buy-to-let cases, significantly cutting the number of supporting documents we ask for and speeding up the journey.

“In part, 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.”