Buy-to-Let in 2025: Why More Landlords Are Turning to Limited Companies & Specialist Property Accountants

A Complete Guide by Direct Assist – Chartered Certified Accountants

Published: 2 December 2025

The UK property market has always been a resilient investment environment. But recent years have brought rising mortgage rates, evolving tax rules, and new compliance requirements — making buy-to-let far more complex.

Higher interest rates caused many landlords to sell, reducing rental supply sharply. According to Zoopla’s latest rental market report, there are now around 21 tenants competing for each rental property — double pre-pandemic levels — pushing average rents to £1,245 per month in July 2024.

Source: Zoopla Rental Market Report

1.What Is IR35?

IR35—also known as the off-payroll working rules—was created by HMRC to prevent “disguised employment.”
This happens when someone works like an employee but uses a limited company to pay less tax.

HMRC determines IR35 status by assessing:

• How much control the contractor has over their work

• Whether they can send a substitute

• Whether there is mutual obligation for ongoing work

If you are inside IR35, tax and National Insurance are taken through PAYE.
If you are outside IR35, you’re genuinely self-employed

Learn more about the latest changes in UK tax policy at Direct Assist Accountant

With the Autumn Budget approaching and more regulatory changes expected, landlords are now reconsidering how to structure their property portfolios. Zoopla’s data shows new-let rental growth at 5.4%, still far outpacing wage growth.

As a result, 67% of landlords plan to purchase their next property through a limited company.

This guide explains why limited companies are becoming the default structure — and how working with a specialist property accountant can significantly reduce tax, improve compliance, and boost long-term returns.

2. Why Buy-to-Let Remains an Attractive Investment

Despite economic pressures, buy-to-let still provides:

Consistent Rental Income

Strong demand and limited supply make rental property one of the most stable income-producing assets. Expected interest-rate cuts in 2025 will further improve yields.

A Tangible, Secure Asset

Property remains a physical, reliable investment — especially during uncertain economic periods.

Long-Term Capital Growth

Historically, UK property prices trend upward over time

Source: House Price Index

But today, success as a landlord requires more than collecting rent — it requires smart tax planning, legal compliance, and the right ownership structure.

3. Limited Company Buy-to-Let: Why It’s Becoming Standard

The past decade introduced major tax changes that made personal ownership less efficient.

Mortgage Interest Relief (Section 24)

Individual landlords can no longer deduct mortgage interest fully.
More info

☑ Limited companies can still deduct 100% of mortgage interest, making them far more tax-efficient.

Corporation Tax vs Income Tax

• Personal landlords pay up to 45% income tax

• Limited companies pay 25% Corporation Tax

For higher-rate taxpayers, the savings are substantial.

Easier Reinvestment of Profits

Retaining profits inside a company allows cheaper reinvestment and refinancing.

Better Inheritance Tax Planning

Transferring shares in a company is often more tax-efficient than transferring property outright.

Learn more: Limited Company Buy-to-Let Accounting

4. Why Work With a Specialist Property Accountant?

This is where Direct Assist Accountants provides unmatched support.

A property accountant delivers:

Tax Efficiency & Strategic Planning

We ensure landlords maximise:

• mortgage interest deductions

• allowable expenses

• capital allowances

• tax-efficient profit extraction

• optimal company structure

• long-term tax strategy

Learn more: Property & Landlord Tax Services

Full Compliance With Changing Regulations

From Making Tax Digital, to Capital Gains Tax changes, to updated SDLT rules, compliance has never been more complex.

Learn More: https://www.gov.uk/capital-gains-tax

We ensure you stay fully compliant and avoid penalties.

Advanced Property-Specific Expertise

We advise on:

• VAT on property

• furnished vs unfurnished rules

• HMRC investigations

• company structuring

• landlord allowable expenses

Real-Time Bookkeeping & Reporting

All clients get FreeAgent or Xero included, giving:

• live financial dashboards

• digital receipt management

• tax forecasting

• portfolio performance tracking

Learn more: Bookkeeping Services

5. Your Next Step as a Landlord

Buy-to-let continues to offer strong opportunities — but only when structured correctly.

✔ Limited company ownership reduces tax
✔ Specialist property accountants protect your profits
✔ Compliance is easier with expert guidance
✔ Long-term returns can be significantly higher

If you want tailored advice on structuring your property portfolio, we’re here to help.

5. Why Choose Direct Assist Accountants?

At Direct Assist Accountants, we offer:

• • Trusted Compliance Partner – Experienced accountants working closely with Companies House and HM Land Registry.

  • Tailored Service – We adapt to your entity’s structure, deadlines, and property portfolio.

  • Regulated Expertise – Our in-house team is qualified and UK-regulated, offering reliable, accurate, and confidential service.

If you decide to operate as a limited company later, we can manage the transition and ensure you stay compliant with IR35 and other regulations.

👉 Get an instant quote on our website
👉 Or request a callback to speak with an accountant today.

With over 300+ 5-star reviews across Trustpilot and Google, our clients trust us to handle their complex UK property compliance needs.

Take the Next Step

If your overseas entity owns or plans to acquire UK property, don’t risk delays, fines, or transaction issues. Contact Direct Assist Accountants today to ensure your ROE registration is handled efficiently and accurately.

Make an Enquiry