Three quarters (75%) of landlords operating in the UK have now used a limited company to invest in at least one of their properties, according to a poll by GetGround.

The platform found that half (49%) of these landlords first invested via a limited company within the last 12 months, while two in five (42%) of them had done so for the first time in the last one to three years.

While use of limited companies is high among landlords, they have yet to be fully adopted by most investors. The poll shows that 93% of landlords that have used limited companies manage less than half of their total property investment portfolios through companies.

External market events are driving adoption of limited companies by landlords, according to the data. As many as 93% of those surveyed who incorporate their property investments said that if it wasn’t for the limited company structure, their investments would be less profitable while mortgage rates remain high. Some 57% of landlords said the limited personal liability is a key benefit of incorporation. The same percentage said using limited companies to enable co-investment among multiple people is a second key advantage.

Moubin Faizullah Khan, CEO of GetGround, commented: “Industry data is creating an exciting picture of limited company adoption across the landlord community, but until now it’s not been entirely clear how many individual landlords are using limited companies and how extensively used they are among landlords’ portfolios. Our final poll for 2022 shows that awareness and adoption of incorporations is fast growing, and importantly, for the right reasons.”

The CEO added: “It is reasonable to expect that limited company adoption will continue to accelerate as we move into 2023.”