According to analysis by Paragon Bank, the proportion of BTL completions made via a limited company has been rising steadily since 2018, when it made up just 7.5% of completions.
Limited company structures have become increasingly popular following changes in 2017 that meant gross rental income was taxed.
Prior to 2017, landlords who held property in their personal name could deduct mortgage interest and finance costs from rental income, which has now been phased out and replaced with a 20% tax credit.
The report noted that the proportion of completed BTL remortgages through a limited company came to 11.5% of transactions, a rise from 10% in 2024 and up from 1.3% in 2018.
Companies House figures also showed that just under 50,000 companies were established for the practice of buying and selling own real estate in 2025, which Paragon Bank said was the most common SIC code used by landlords when applying for BTL finance via a limited company.
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In total, 49,029 companies were incorporated for this reason during the year, rising from 45,775 in 2024.
Companies House data shows that 274,315 businesses are active for the purpose of buying and selling own real estate, which is higher than the number of businesses incorporated and active in the hospitality industry.
Louisa Sedgwick, Paragon Bank’s managing director of mortgages, 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.
“Limited company structures can potentially not only offer more efficient tax treatment but also provide greater flexibility for portfolio growth and long‑term planning. The record share of purchases and remortgages completed through limited companies in 2025 underlines how deeply this trend is now embedded in the sector, and it is one we anticipate will continue.”
Younger landlords opting for limited company structures
Paragon research from earlier this year shows that nearly a third of landlords hold their properties exclusively through a limited company structure.
A further 36% said they share their ownership between corporate entities and personal names, while 65% said they had created at least one special purpose vehicle (SPV) for BTL investments.
Limited company landlords are also more popular with younger landlords, with 57% of properties for those aged 25-34 being held in limited companies, while 43% are owned through a mix of corporate and personal names.
Jason Wilde, Paragon Bank’s mortgages head of sales and retention, concluded: “Paragon has a long history of supporting limited company landlords and the proportion of incorporated completions on our own book are significantly higher than the broader market. Landlords looking for a lender for limited company transactions need to consider that organisation’s track record in this segment of the market.”
