This year is set to be a defining one for the private rental sector. The Renters’ Rights Act is confirmed, ready to be implemented, and the Autumn Budget 2025 looks set to reshape our fiscal landscape.
Despite this, investing in property has lost none of its appeal. In fact, there are thousands of landlords under the age of 45 entering the private rental market, retaining their rentals and tactically planning for their futures.
Under 30 & invested in property
If you want to know just how many bright young things are also landlords, you only have to look at a survey conducted in 2024 by national accountancy group, UHY Hacker Young. It revealed in excess of 3,000 landlords in the UK were aged 21 or younger, while there were 63,000 property investors aged between 21 and 30. Together, the two groups collected an estimated £852 million in rental income.
With such sums involved, it makes perfect sense to be examining the most tax efficient way to invest in property. If you are a Millennial (born between 1981 and 1996) or Gen Z (born between 1997 and 2012), there is a really grown-up strategy you could explore, with thousands already switching tact.
Start a company from 16 years old
Purchasing and holding buy-to-lets as a limited company is increasingly popular with young landlords. It may come as a surprise that you only have to be 16 years old to set up and become a director of a UK limited company. It is important, however, to understand the responsibilities and implications of becoming a company owner, director or shareholder.
Companies House data from 2025 was recently analysed, revealing an increasing number of Millennials setting up limited companies to purchase buy-to-lets. In fact in this year to date, Millennials made up 50% of all new shareholders in companies set up to invest in property. Five years ago, 29 to 44 year olds represented 40% of new buy-to-let shareholders.
Start with Ltd status
The upsurge in young landlords following the limited company path could be explained by the mechanics of purchasing. Older landlords who already have buy-to-let properties or portfolios as private individuals would have to sell their properties to their own company to gain limited status. As such, they would be required to pay stamp duty as a company buyer and almost certainly capital gains tax (CGT) as a seller.
New-to-market landlords starting from scratch have the advantage of setting up a limited company first and making the first and any subsequent buy-to-let purchases through their company, avoiding a second set of stamp duty and any CGT liability.
Limited company status can bring landlords tax benefits and that’s why the structure is proving popular. Landlords whose company owns the buy-to-lets pay corporation tax on the profit. This can work out cheaper for higher and additional-rate tax payers, when compared with how much income tax would be due.
Of course, landlords are at the mercy of the Autumn Budget, which will be delivered to the House of Commons on 26thNovember around 12 noon. If you think the tax efficiencies of a limited company could apply to you, seek professional tax advice. Contact us if you have the desire to purchase a buy-to-let or expand your portfolio with a new limited company structure.
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