A surprising 65% of landlords are considering or have already become a limited company as thousands seek tax benefits to help their business succeed.

OSB Group’s latest Landlord Leaders survey found that this jumps to 72% for professional landlords – those owning multiple properties and earning their main income from them - while 46% of non-professional landlords have made the change to a company or incorporated entity.

Hamptons recently reported that a record 50,004 limited buy-to-let companies were set up last year, driven mostly by existing landlords looking to shelter themselves from higher interest rates.

In December 2023, there were 345,426 active limited companies designed to hold buy-to-let property in the UK, up 11% from the start of last year.

Most of the growth came from smaller landlords, with a 21% increase in the number of homes held in companies with a single property.

OSB also found that landlords are continuing to invest in the future of the PRS, as 69% have already or are planning to increase the size of their property portfolio.

Meanwhile, 66% are investing or planning to invest to stay ahead of legislative changes, according to its poll of 1,000 landlords.

Many report that their tenants’ experience is important, with 75% of landlords engaging or planning to engage with tenants to understand their needs better and foster positive relationships, while 25% expressed their desire to positively impact tenants’ lives.

Jon Hall (pictured), OSB group MD mortgages and savings, says the research clearly demonstrates that landlords are optimistic and committed to the future of the sector.

He adds: “The actions landlords are taking, such as future financial planning, investing in the growth of their businesses, and building better tenant relationships, are a clear sign of their drive to improve the PRS for the long-term despite the many headwinds.”

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