The share of properties that are held by landlords within limited companies has more than doubled over the past five years, with new purchases by landlords who have now been purchased almost exclusively within such structures.
According to Foundation Home Loans Landlord Research, which shows that in Q1 2020 36% of all properties were held within a limited company, and this figure rose to 74% in Q4 2024.
In the same time scale, the average number of properties within a limited company had grown from 6.3 to 10.6.
Landlords who work with at least some of their property in a limited company usually have considerably larger portfolios (on average 14.4) compared to those of all their property in their individual name (an average of 5.2).
About 22% of the landlords now have at least one real estate within a limited company, with 9% having their entire portfolio in this way.
These results come from the Q4 2024 Landlord Trends Report, performed by Pegasus Insight on behalf of Foundation Home Loans, which consisted of 789 online interviews between June and July 2024.
According to Foundation, the results indicate that landlords are increasingly looking for admission and now have a much more chance of a considerable number of properties within such a structure, which shows a further trend to the professionalization of the sector.
The lender argued that increased professionalization and more portfolio magazines were also shown heavily in the type of properties that were purchased and exuberant.
One in five landlords now has an HMO ownership within their portfolio, where the average number is kept at 3.1, while this rose to 29% of all larger landlords, classified with 11-plus properties in a portfolio.
The number of landlords with a holiday ownership was now 6%, with the average number being retained at 1.6, while the percentage for larger landlords was 12%.
Foundation said it had continued to see a larger number of landlords much more willing to buy and keep specialist real estate types, such as HMOs and blocks with multiple units. Although landlords are still much more likely to do terrace -shaped houses (62%) and individual flats (52%), 10%now have a block of individual flats.
Foundation Home Loans Director of Sales Grant Hendry noted: “The shift to landlords who keep their property within a structure of the limited company can clearly be seen from the latest results of our landlord trend report.
“Indeed, almost all new purchases per landlords are within a limited company, that you might tell everything you need to know about the impact of reducing the mortgage interest tax on private individuals and the need for landlords to take up not to be affected By this.
He added: “At the same time, landlords of all species recognize the persistent need for diversification, in particular the type of real estate, which can often yield a more significant rental yield than ‘traditional’ properties.