Landlords operating through companies are taking a bigger share of the rental market.

Research from Pegasus Insight shows that more than one in five landlords now operate at least part of their portfolio through a limited company. 

While overall penetration has edged up gradually rather than dramatically, the characteristics of these landlords differ markedly from their individually-held counterparts.

On average, landlords using limited company structures control more than three times as many properties as those holding stock in their own name. 

They are also more reliant on buy-to-let borrowing, reflecting the more capital-intensive and leveraged nature of their portfolios.

The divergence extends beyond scale and finance. Limited company landlords are twice as likely to own Houses in Multiple Occupation (HMOs), with 35% holding at least one HMO compared with 17% of individual landlords. 

They are also more commercially engaged: 27% operate as full- or part-time landlords, versus 14% among those holding property personally.

Behavioural differences are also increasingly evident. Three quarters of limited company landlords increased rents in the past year, compared with 61% of individual landlords, suggesting greater responsiveness to market conditions and cost pressures.

Taken together, the data suggests that landlords operating through limited companies increasingly resemble small-scale property businesses rather than traditional private investors.

A Pegasus Insight spokesperson says: “This isn’t about a sudden surge into incorporation, but about a steady structural divergence. 

“Limited company landlords are operating at a different scale, with different funding models and different levels of engagement in the market.

“They tend to run larger, more leveraged and often more complex portfolios, which naturally creates a different risk profile and a different set of support needs.”