The way landlord’s own property in the UK has changed significantly in recent years. More investors are now choosing to purchase and hold rental property through a limited company rather than in their personal name. This shift is largely driven by tax changes and the desire for a more structured approach to property investment.

What’s Driving the Change?

Changes to mortgage interest tax relief, including Section 24, have reduced the benefits of owning buy-to-let property personally. Landlords can no longer fully deduct mortgage interest from rental income before tax is calculated. Limited companies, however, can still offset finance costs as a business expense, which can result in improved cash flow and greater tax efficiency. Profits within a limited company are subject to corporation tax, which is often lower than higher-rate personal income tax.

The Key Benefits of Limited Company Ownership

Many landlords are choosing this route because it offers greater flexibility and long-term advantages. Limited companies allow full mortgage interest relief, clearer separation between personal and business finances, and a more professional structure for portfolio growth. For investors planning to expand, this setup can make it easier to manage multiple properties and reinvest profits back into the business.

Limited Company Mortgages

Buy-to-let mortgages are available for properties owned by limited companies and can be used for single rental homes, HMOs, and larger portfolios. In most cases, lenders require directors and shareholders to provide personal guarantees, even though the property is owned by the company.

Is Limited Company Ownership Right for You?

While limited company ownership works well for many landlords, it is not suitable for everyone. There are additional costs involved, including accountancy fees and company administration. It is important to seek professional tax and financial advice before deciding whether to buy property through a limited company.

The Luna Move View

Limited company ownership is no longer just for large-scale investors. It has become a popular and practical option for landlords who want to grow their portfolios efficiently and professionally. At Luna Move, we help landlords understand their options and point them in the right direction to make informed decisions that support long-term success.

If you would like advice on managing or growing your rental portfolio, our team is always happy to help.