Limited company ownership has become the main model among landlords with larger buy-to-let portfolios, industry figures suggest.
The data, drawn from portfolio management group Lendlord, shows that 45.1% of buy-to-let ownership is through a company, while 54.9% is held privately.
While 67.1% of ownership is private among landlords with one to three properties, 57.6% of those with 20 or more now hold them within a limited company structure.
Company ownership first becomes the larger share in the 11 to 20 property band, Lendlord said.
Company ownership is no longer a niche structure.”
The report highlights that the North East is the most corporate market, at 53.5% company-owned.
Company ownership has become more established in the North East, Yorkshire & Humberside and Scotland, the analysis suggests.
It comes as landlords operating privately have been hit with tax changes in recent years, including restrictions on mortgage interest relief and extra Stamp Duty charges.
Landlords operating through limited companies get extra perks such as treating mortgage interest at an expense while profits are taxed under corporation tax rather than their personal rate. There are extra reporting requirements involved though.
Landlords operating through limited companies get extra perks such as treating mortgage interest at an expense.”
However, this is reflected in the cost of borrowing. The report highlights that average mortgage rates differ by ownership type. The typical buy-to-let mortgage rate for private landlords is 4.76%, but company landlords pay more at 6.44%.
Aviram Shahar, co-founder of Lendlord, said: “Company ownership is no longer a niche structure used only at the very top of the market – 45.1% of buy-to-let ownership is already sitting in a company, and among larger portfolios it is the majority model at 57.6%.
“That split matters. Smaller landlords still tend to hold in their own name.
“Larger landlords, and more of the North, have already moved into companies. Lendlord is the place for landlords to bring portfolio, mortgage and tax data together, stay on top of compliance and manage that shift with confidence.”