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Better off buying a buy-to-let through a company?

Journalist: Myra Butterworth, Freelance

ended 11. October 2024

Hi, I'm writing a story for Mortgage Solutions about whether it is better for landlords to buy their buy-to lets through a company.

In particular, will landlords be better incorporating their buy-to-lets, especially in light of the renters’ rights bill?

I’m looking for some comments on:

  • Is it better for landlords to buy their buy-to lets through a company?
  • Will landlords be better incorporating their buy-to-lets, especially in light of the Renters’ Rights Bill? And if so, in what way specifically?
  • What are the biggest reasons behind your views?

1 responses from the Newspage community

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Suzanne Smith
Founder at The Independent Landlord
The Renters' Rights Bill won't make any difference in itself as to whether landlords are better off buying a rental property through a limited company.

This is because the Renters' Rights Bill is introducing a new tenancy system that gives tenants more rights, and landlords more obligations. It doesn't change the tax situation for landlords, and that's the real driver behind whether it makes sense for a landlord to go through the cost and hassle of buying a rental property through a limited company.

However, it's likely the added complexity the Renters' Rights Bill will bring will lead to increased "professionalisation" of the private rented sector, with many landlords with smaller portfolios leaving. The larger the portfolio, the more sense it makes to run the business through a limited company.