Fresh analysis from a mortgage consultancy firm highlights incorporation as a growing strategy for landlords navigating today’s tougher tax and regulatory environment.

The research shows that 22% of landlords now hold at least one rental property within a limited company. Among portfolio landlords one in three operate a mixed-status model, and for those who have incorporated around 70% of their holdings sit inside the company structure.

Over the past five years, the average number of properties held within limited companies has risen steadily—from 6.3 in Q1 2020 to 10.5 in Q3 2025. By contrast, the overall size of mixed-status portfolios has remained broadly unchanged at around 15 properties, suggesting landlords are reshaping ownership models rather than expanding portfolios.

New acquisitions fuel rise in Incorporation

The research indicates that the expansion of company-held portfolios is being driven largely by fresh purchases. Landlords are opting to acquire newly added properties through limited company structures, rather than moving existing stock across.

This shift in ownership strategy underscores the mounting pressures on landlords, as evolving tax rules, rising operating costs, and tightening legislation reshape the private rental landscape.

A spokesperson for marketing consultancy, says: “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.

“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. Mortgage brokers cannot and should not provide tax advice, and landlords need specialist guidance before making structural changes to their business.

“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.

“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.”