Credit Check
The trend of landlords purchasing and managing rental properties through limited companies continues to surge in 2025, marking another record-breaking year for limited company buy-to-lets. New figures suggest that this strategic approach to property investment is now the preferred route for both professional landlords and smaller investors looking to maximise returns in an increasingly complex tax landscape.
Limited Company Buy-to-Let on the Rise.
According to recent data from Companies House, the number of limited companies established to hold buy-to-let properties has now surpassed 680,000 across England and Wales, a remarkable rise from 2024’s record total. This represents a 23% increase year-on-year and an extraordinary 332% growth over the past decade.
For the first time, buy-to-let companies now represent the most common small business type registered in the UK, outpacing fast food outlets, beauty salons, and hairdressers. This growth demonstrates how landlords are increasingly professionalising their operations in response to changing tax regulations and evolving market conditions. This is especially important for UK expat and foreign national landlords, who will have more complex tax and financial situations to consider.
A Shift from Accidental to Professional Landlords.
The surge in limited company buy-to-lets also reflects a broader shift in the profile of landlords. While the so-called ‘accidental landlords’ – those who let out a property due to inheritance or changing personal circumstances – are becoming less common, a new generation of more business-minded investors is emerging. ‘This is especially evident amongst the UK expat and foreign national investors that we speak to on a daily basis’ says Stuart Marshall, CEO of liquid Expat Mortgages. ‘These investors view property as a long-term, strategic asset. Setting up a limited company requires upfront costs, ongoing accountancy fees, and compliance considerations, which suggests that these landlords are in it for the long run rather than seeking short-term gains.’
‘This professionalisation has become particularly relevant since the 2016 tax reforms, which phased out mortgage interest tax relief for individual landlords. By contrast, limited companies can still deduct mortgage interest as a business expense before paying corporation tax – a key factor behind the growing popularity of this structure for UK expat and foreign national investors.’
Regional Hotspots Lead the Way.
While London remains the UK’s biggest centre for limited company landlords with over 122,000 companies registered, the North West continues to see some of the fastest growth. Cities such as Manchester and Liverpool have experienced a 26% rise in limited company set-ups, reflecting the region’s attractive combination of affordability, strong rental yields, and robust tenant demand.
The South East follows closely with around 50,000 registered companies, while Birmingham has also seen a surge of over 24% year-on-year. This regional trend highlights how investors are diversifying beyond London, seeking out markets where property prices are more accessible and returns more sustainable. Industry experts note that many landlords in the North and Midlands are experienced investors who own properties across the country, including in the capital. Operating through a limited company allows them to manage their portfolios more efficiently and structure their investments for better long-term tax outcomes.
Tax Efficiency and Long-Term Planning.
For many UK expat and foreign national investors, the benefits of holding property through a limited company go beyond immediate tax savings. A corporate structure provides greater flexibility for wealth management and succession planning, allowing investors to gift shares, establish trusts, or transfer ownership more efficiently. ’This approach can help UK expat and foreign national landlords to make a strategic plan for the future’ continues Stuart Marshall. ‘And while the limited company structure was already popular, overseas investors are increasingly using UK-registered limited companies to hold property, partly in response to new government regulations requiring offshore entities to register locally.’
Limited Companies as the Future of Buy-to-Let.
With between 70% and 75% of new buy-to-let purchases now made through limited company structures, it’s clear that this trend is far from slowing down. The combination of tax advantages, improved wealth planning options, and changing investor attitudes have made the limited company model the default choice for serious landlords. The case is no different for UK expat and foreign national landlords. ‘As mortgage rates stabilise and rental demand remains strong, this corporate approach is likely to underpin the next phase of growth in the UK’s private rental sector’ says Stuart. ‘For many investors – particularly expats and overseas buyers – it offers a practical route to long-term profitability and more efficient portfolio management.’
Expert Support for Expat and Overseas Investors.
At Liquid Expat Mortgages, we’ve supported thousands of UK expat and foreign national investors from first-time buyers to established portfolio holders in navigating the complexities of limited company buy-to-let. Whether you’re based in the UK or overseas, our team of specialist advisers can help you to understand the financial and tax implications of operating through a limited company and find the most suitable mortgage product for your circumstances.
If you’re considering investing through a limited company in 2025, get in touch with our experts today to discuss your options and take advantage of this growing trend.
Liquid Expat Mortgages
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden, Rossendale
BB4 5HU
Phone: 0161 871 1216
www.liquidexpatmortgages.com
Any media enquiries please contact Ulysses Communications.
sergio@ulyssesmarketing.com
+44 161 633 5009
