Why Landlords Are Incorporating Their Property Portfolios

The way landlords and property investors operate is changing fast. These days, landlords are setting up limited companies to hold their rental properties, and the numbers are skyrocketing.

Companies House records showed a 46% annual jump in new property businesses in 2024, the biggest in five years. After increases of 1% in 2022 and 21% in 2023, last year’s sudden spike suggests a trend in how investors are playing the property game. What is driving that?

Why Landlords Are Incorporating

Experts say more landlords are setting up limited companies to manage their Buy-to-Let portfolios owing to several benefits doing so offers.

One is tax advantages: mortgage interest tax relief for individual landlords has been slashed, but companies can still offset finance costs against profits. Holding property in a limited company also shields personal wealth if things go wrong. Another benefit is smooth succession planning: passing on shares in a company is more efficient than transferring individual properties.

Because of evolving regulations and a growing focus on asset protection, company ownership is becoming the preferred route, according to analysts.

The Rise of Regional Property Hubs

London has long been the undisputed king of UK property investment, but regional cities are now giving the capital a run for its money.

Manchester and Liverpool posted more than 25% growth in property business registrations in 2024, rivalling London’s appeal. Investors were also drawn to Birmingham and Leeds thanks to strong rental demand there and lower entry costs compared with the capital.

Manchester continues to be a prime destination for owner-occupiers and investors looking for strong yields and long-term growth possibilities. And Liverpool’s booming development scene and major regeneration projects in Leeds and Bristol are pulling in investors from the UK and abroad.

It’s not just about acquiring property, though. Investors are increasingly structuring their holdings through corporate entities to optimise management, tax efficiency and long-term succession planning.

Conclusion

The shift towards limited companies isn’t slowing down. As tax rules tighten and landlords look for clever ways to protect and grow their wealth, incorporation is becoming the go-to strategy.

For those eyeing regional markets, affordability, high demand and strong yields make cities like Manchester, Liverpool and Birmingham serious contenders. And with the right structure, investors can maximise returns while keeping their assets secure.

If you’re a landlord still running things as an individual, it might be time to ask: should you be setting up a limited company too?