By Limited Company borrowing has significantly increased in the last decade. Ahead of the Renters’ Rights Act and the Autumn Budget, we examine why this investment structure will be a lifeline to many landlords in 2026.
2026 will be defined by the implementation of the Renters’ Rights Act, reshaping the buy to let market as we know it. Contentious? Yes. But by now, it is a known entity. Rachel Reeves’ upcoming budget, however, threatens to shake the economy altogether. Including potentially increasing buy to let mortgage rate pricing.
With such significant change on the way for landlords, finding ways to save on costs and boost rental profits to ensure some stability is essential. And for many, using a Limited Company investment structure may be key.
Limited Companies for buy to let businesses increased 23% in 2024 alone. It’s estimated that 22% of landlords own at least 1 property in a Limited Company, and 9% own all their investment properties this way. Once considered too complex and only for large portfolio landlords, Limited Companies are fast becoming the norm.
To be clear: Limited Company investment is not suitable for everyone. It’s essential you seek advice from a professional tax adviser before making any decisions. However, it’s crucial to understand how this type of ownership can benefit your property investment enterprise.
Why landlords invest via SPV Limited Companies
1. Tax efficiency
The tax benefits of Limited Company investment are arguably the biggest draw for landlords.
- Corporation Tax: Limited Companies pay Corporation Tax, rather than Income Tax. If you’re a higher-rate taxpayer, this can offer significant tax savings and help increase your profits.
- Mortgage interest relief: you can deduct full mortgage interest relief as a business expense for properties owned by a Limited Company. You can only claim up to 20% if you borrow in your personal name.
- Inheritance planning: Investing via a Limited Company also gives you the flexibility to sell shares rather than property. This helps mitigate Capital Gains Tax and transfer property ownership for more efficient inheritance planning.
2. The mortgage finance opportunities
Since the modification of Section 24 was announced in 2015, lenders have made Limited Company borrowing much more accessible and competitive.
New lenders frequently enter this space, and some traditionally vanilla lenders launched product ranges for Limited Companies just this year. Other lenders continuously look for ways to improve products and meet landlords’ changing needs.
Consequently, the difference in product pricing between personal and Limited Company rates has significantly reduced to the minimal difference we see now. You can secure extremely competitive mortgage pricing while accessing all the other benefits Limited Companies offer.
Furthermore, as Limited Companies are typically more tax-efficient, lenders can offer more generous stress tests against these applications. That means you can usually borrow more per pound of rent when investing through an SPV than in your own name.
3. Succession planning and portfolio management
SPVs go beyond offering tax efficiency and competitive mortgage rates. There are also plenty of opportunities to help you plan for your future.
This includes:
- Separate finances: Owning an SPV Limited Company clearly separates your personal and professional assets, which simplifies the bookkeeping process
- Limited liability: In some cases, although not all, lenders will not require a personal guarantee with your Limited Company mortgage application. This varies case-by-case, so speak to an expert broker if you’re looking to secure a rate without a personal guarantee
- Succession planning: Shares in your SPV Limited Company can be transferred to heirs or business partners much more easily than for properties owned in your own name
Why this matters now (more than ever)
Our community faces significant headwinds as we move into 2026. The imminent Renters’ Rights Act will likely induce additional costs for landlords, including increased property maintenance and the set-up of a landlord register (to be confirmed).
More imminent, and potentially more damaging, is Rachel Reeves’ budget announcement. If the rumours of extending National Insurance to private rents come to fruition in November, landlords earning between £50,000 and £70,000 from their property portfolio could expect a further £1,000 to their annual tax bill. Furthermore, any poorly judged policies could unsettle money market confidence, causing a spike in mortgage interest rates.
While investing through a Limited Company will not shelter you from all these extra costs, it could mitigate the impact on your profit.
Is Limited Company investment right for me?
Despite the many benefits, investing through a Limited Company isn’t for everyone. Here are some of the reasons it might not be suitable for you:
- If you’re a basic-rate taxpayer, you’re unlikely to see any tax benefits (it might cost you more!).
- The cost of transferring existing investment property into a Limited Company may be too expensive, or not cost-effective in the long run.
- Running a Limited Company requires more of your time and comes with more administrative costs. Depending on your long-term investment plans and commitments, this may be more of a burden.
Whether you’re a seasoned portfolio landlord looking to incorporate your existing portfolio or are about to buy your first investment property, here’s what you need to do:
- Get tax advice: speak to a qualified tax adviser about your circumstances and plans. They’ll assess what the best options for you are.
- Get mortgage advice: speak to an expert mortgage broker about the types and cost of mortgage finance. If you already own buy to let property, you’ll need to refinance if you move to a corporate entity.
While 2026 may be another bumpy year for many landlords, there are workable solutions to keeping your long-term property investment plans alive, without compromising on profit.
Mortgage Finance Brokers Limited is authorised and regulated by the Financial Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgage Finance Brokers Limited is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.
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