A new report reveals an overwhelming majority of landlords plan to invest via a Limited Company in 2026. Why are Limited Companies so popular now amongst buy to let landlords?
A new report from Paragon Bank has revealed that nearly two-thirds of landlords (63%) plan to purchase their next buy to let investment through an SPV Limited Company.
What’s most interesting about Paragon’s report is how the likelihood of investing via a Limited Company changes with age:
- 100% of respondents aged 25-34 plan to use a Limited Company
- 82% of those aged 35-44
- 73% of those aged 45-54
- 54% of those aged 55-64
- 48% of those aged 65-75
These results mirror Hampton’s latest analysis of Companies House data, which shows that millennials (those born between 1981-1996) now account for nearly half of all shareholders in buy to let Limited Companies set up in 2025. This figure is more than double that recorded just five years ago and reflects how the new generation of landlords will be focused on Limited Company investment.
Paragon’s results also show that a third of landlords (32%) intend to incorporate their properties currently held in their personal names into a Limited Company structure.
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The future of Limited Company buy to let mortgages
Louisa Sedgwick, managing director of mortgages at Paragon Bank commented, “Our research shows how owning property via a Limited Company structure has become increasingly popular over the past decade, driven by changes in taxation"
“Nearly two-thirds of landlords intend to make future purchases through Limited Companies, so we expect the overall proportion of property held within a Company structure to increase steadily in the coming years, particularly when you include those landlords who will incorporate existing property from their personal name.”
She added: “It’s encouraging to see that they will continue to adapt in this way, particularly the next generation of landlords who seem to have realised the potential benefits of this ownership structure early in their lettings business careers.”
Your next steps
Whether you’re looking to purchase through your existing Limited Company, set up a new SPV, or have questions about borrowing through this investment type, our expert mortgage makers can help.
As Limited Company borrowing becomes increasingly popular, it’s essential to work with a broker to ensure you secure the most competitive deal available to you.
Speak to our buy to let team on 0345 345 6788 or get in touch here .
