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UK Landlords Form Record Number of Buy-to-Let Companies as Incorporations Climb in 2026

Tax changes since 2016, alongside higher mortgage costs, are pushing investors into company structures.

Overview

  • A record 66,587 buy-to-let companies were created in 2025, taking the total to 443,272, nearly five times the 2016 count.
  • In January 2026, 5,922 new buy-to-let companies were registered, up 11% year on year, indicating the trend is still accelerating.
  • Hamptons estimates that 75–80% of new buy-to-let purchases now occur through limited companies, with rental firms ranking as the second-largest new business group in 2025.
  • Investors bought 10.8% of homes in 2025, down from 11.9% in 2024, suggesting ownership is being restructured rather than expanded.
  • Rents for new lets fell 0.2% year on year to £1,366, renewal rents rose about 2.8%, and the Renters’ Rights Act taking effect in May is expected to curb bidding wars.