Landlord company ownership doubles in five years

Landlord company ownership doubles in five years

0:04 AM, 14th February 2025, About A day ago

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Property ownership by landlords within limited companies has surged, more than doubling in the past five years, research reveals.

According to Foundation Home Loans’ Q4 landlord research, new property acquisitions are now almost exclusively conducted through these structures.

In early 2020, 36% of properties were held this way, rising to 74% by late 2024.

The average holding within a limited company has also increased, from 6.3 to 10.6 properties.

Landlords using a limited company structure

Foundation’s director of sales, Grant Hendry, said: “The shift towards landlords holding their properties within a limited company structure is clear to see.

“Indeed, almost all new purchases by landlords are within a limited company, which perhaps tells you all you need to know about the impact of the cut to mortgage interest tax relief on individuals and the need for landlords to incorporate in order not to be hit by this.

“At the same time, landlords of all sizes are recognising the ongoing need for diversification, particularly across property type, which can often deliver a more sizeable rental yield than ‘traditional’ properties.

He added: “Hence why we now have one in five of all landlords owning a HMO, while this number rises to 29% for those that we might class as larger landlords.

“At the same time, landlords are now more likely to own a holiday let property, with those that do owning 1.6 on average.”

Tend to own larger portfolios

Landlords using limited companies tend to own larger portfolios which average 14.4 properties, compared to those holding properties individually, which is 5.2.

Currently, 22% of landlords own at least one property via a limited company, with 9% holding their entire portfolio this way.

Foundation suggests this demonstrates a growing trend towards professionalisation within the sector.

Professionalisation of landlords

This professionalisation of landlords is also reflected in property types, with one in five now owning a House in Multiple Occupation (HMO), averaging 3.1 properties.

For larger landlords, that’s those with 11+ properties, this rises to 29%.

Holiday let ownership has also increased, with 6% of landlords owning them, averaging 1.6 properties, and 12% of larger landlords owning such properties.

While terraced houses (62%) and individual flats (52%) remain popular, 10% of landlords now own a block of flats.


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