Landlords operating through limited company structures are 14 percentage points more likely to increase rents than individual landlords, according to data from property research firm Pegasus Insight.
The company’s Landlord Trends survey found that 75% of limited company landlords raised rents in the past year, compared with 61% of landlords holding properties in their personal names.
Portfolio size and structure
The research reveals significant differences in how incorporated and individual landlords operate. Limited company landlords hold an average of 15.9 properties, more than three times the 4.9 properties owned by individual landlords.
Limited company structures also show higher engagement with houses in multiple occupation (HMOs), with 35% of incorporated landlords holding at least one HMO property compared to 17% of individual landlords.
Mark Long, head of Pegasus Insight, said: “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.”
Market implications
The findings suggest that landlords using company structures approach property investment as a business operation rather than supplementary income, with more commercial decision-making around rental pricing.
Long added: “For lenders and policymakers, this is important, as it shows the private rented sector is no longer a single, uniform market. Ownership structure is becoming an increasingly important lens through which to understand landlord behaviour, resilience and even future supply.”
The data indicates a structural shift in the UK rental market, with incorporated landlords forming a distinct segment with different operational characteristics and market behaviours compared to traditional individual landlords.