The Intermediary –- May 2026 - Flipbook - Page 50
BUY-TO-LET
Opinion
LIMITED COMPANY
OF LANDLORD
ith the
majority of the
Renters’ Rights
Act hiing the
statute books,
the property
ownership structure is becoming
as important as the asset itself. For
many landlords, whether to move
to a limited company structure for
buy-to-let (BTL) is now a cornerstone
of that conversation, rather than a
peripheral option.
Analysis of Companies House data
by Hamptons shows that 5,922 new
buy-to-let limited companies were set
up in January 2026 alone, an increase
of 11% on the same month last year.
This follows a record 66,587
incorporations in 2025, and brings
the total number of buy-to-let limited
companies to around 443,000.
While Companies House does not
classify buy-to-let entities directly,
Hamptons’ methodology, using SIC
codes and naming conventions,
provides the clearest available view of
activity in this space.
W
A new ownership approach
This isn’t just more of the tax-driven
trend that began several years ago.
What we are seeing now is a deeper
structural change in how landlords
approach ownership, risk and longterm planning.
Limited company structures are
increasingly being used by smaller
landlords and first-time investors, not
just established portfolio holders, and
that shi is reshaping both demand
and the role of advisers.
Tax treatment still remains part of
the picture, especially when it comes
to mortgage interest relief and profit
retention, but the wider context is just
as important.
Higher interest rates, tighter
margins and a more complex
regulatory landscape are pushing
landlords to take a more disciplined,
businesslike view of their portfolios.
The decision about ownership
structure is being made earlier,
48
The Intermediary | May 2026
Brokers operating
in this space need lenders
that take a wider view of
risk, recognising that not
all strong cases look the
same on paper”
CHRIS BLEWITT
is head of mortgage distribution
at Darlington Building Society
oen at the point of first purchase,
rather than as a later stage
restructuring exercise.
The Renters’ Rights era
The introduction of the Renters’
Rights Act has given landlords
plenty to digest. While the longterm intention is to improve
standards and stability for tenants,
it also brings additional compliance
requirements and operational
considerations for landlords.
So, the ability to retain profits
within a company, manage costs more
efficiently and plan over a longer
time horizon becomes more valuable.
Limited company structures support
that approach, particularly for those
who are looking to build or maintain
a portfolio in a more controlled and
sustainable way.
From a market perspective, this
points to a market that is adapting to a
changing operating environment.
Rental growth moderated during
2025, and while that has taken some
pressure off tenants, supply remains
constrained relative to historic levels.
That imbalance continues to
support underlying demand for
rental property, even as affordability
and regulation shape behaviour at
the margins.
For landlords, the focus is shiing
away from short-term capital
growth, towards yield, resilience
and long-term viability, and that
plays directly into the strengths of a
limited company model. For brokers,
this creates a clear opportunity,
but also raises the bar in terms of
advice. Limited company BTL is
becoming part of the core market,
which means advisers need to be
comfortable discussing structure, tax
considerations in broad terms, and
the practical implications of holding
property within a company.
More importantly, they need
access to lenders that understand the
nuances of these cases and are willing
to take a considered view.
Putting in the work
One of the challenges in this space
has always been the balance between
complexity and service. Limited
company cases typically involve
additional layers, from company
checks to more detailed legal work,
and where processes are not well
designed, this can lead to delays and
uncertainty. As volumes increase, that
risk becomes more pronounced.
Technology has a role to play in
improving efficiency, but it needs
to support clear, well-structured
processes rather than add further
friction. The aim should be to
make these cases feel like a natural
extension of buy-to-let lending, while
still allowing the time that more
complex scenarios require.
The mortgage
requirement
Access to capital is another key
factor shaping the market. Higher
