Some 22% of landlords maintain at the least one rental property inside a restricted firm, reflecting the rising recognition of working as an organization.
One in three landlords are mixed-status, which means they’ve a part of their portfolio in a restricted firm, reflecting how situations have modified.
Since 2020 particular person landlords haven’t been capable of deduct their mortgage curiosity as a enterprise expense, as a substitute solely accessing a 20% tax credit score, which has led to extra utilizing the restricted firm construction.
Mark Lengthy, founder and director of Pegasus Perception, which carried out the ballot, stated: “Landlords are working in a really totally different setting from that of a decade in the past. With tax guidelines persevering with to tighten and compliance calls for rising, many now see incorporation as essentially the most strong long-term strategy to run a lettings enterprise.
“However incorporation just isn’t a easy win. It carries prices, introduces further administrative duties, and, crucially, must be thought-about fastidiously with a professional tax adviser. Mortgage brokers can’t and mustn’t present tax recommendation, and landlords want specialist steering earlier than making structural modifications to their enterprise.”
The typical variety of properties held in a restricted firm construction has been rising over the previous 5 years, from 6.3 in Q1 2020 to 10.5 in Q3 2025, whereas the common whole mixed-status portfolio measurement has remained broadly steady over the identical interval at round 15 properties.
Lengthy added: “The Chancellor’s resolution within the current Funds to introduce new increased ‘property’ tax bands of twenty-two%, 42% and 47% for landlords who maintain property in their very own names from April 2027 is simply prone to speed up the transfer in the direction of firm buildings.
“However it additionally dangers penalising the very individuals who have made up the spine of the PRS for round 30 years: smaller, long-standing landlords who’ve quietly offered good-quality properties with out the sources or scale to soak up repeated coverage shocks.
“Incorporation might be the proper reply for some, however authorities must be aware that regularly growing the burden on particular person landlords dangers pushing extra of them out of the sector completely, at a time when the nation can least afford to lose rental provide.”
