Landlords are continuing to move into limited company structures at pace.
According to the latest findings from Hamptons, 66,587 new companies were formed to hold buy-to-let (BTL) property in 2025, an 8% increase year-on-year and a staggering 363% rise compared with a decade ago.
Incorporation Now the Norm for New BTL Purchases
While investors accounted for just 10.8% of all home purchases in 2025, the vast majority of new BTL acquisitions are now being made through corporate structures.
Over three-quarters of new BTL purchases are via limited companies
Total BTL companies reached 443,272 by the end of 2025 (up from 91,278 in 2016)
Around 1.5 million BTL properties are now held in limited company structures
The shift began in 2016 when mortgage interest relief changes were introduced for higher-rate taxpayers. Since then, frozen personal tax thresholds and higher mortgage rates, which company landlords can fully offset against profits, have accelerated the trend.
January 2026 figures suggest momentum is continuing, with nearly 6,000 new BTL companies formed in the month alone.
More Landlords Are Co-Investing
Limited companies are increasingly being used for joint investment:
42% of companies formed in 2025 had multiple shareholders (up from 36% in 2016)
103,280 shareholders were behind last year’s new incorporations
31% of companies are headquartered in London, though more than half of their purchases are outside the capital
The data suggests landlords are using corporate structures not only for tax efficiency but also for partnership investing and portfolio expansion.
Rental Growth Begins to Cool
There are also signs of moderation in the rental market.
The average rent for a newly let home dipped 0.2% year-on-year in January 2026, to £1,366 pcm
However, tenants renewing contracts saw rents rise 2.8% year-on-year, to £1,305 pcm
Rental declines have been most visible in:
Inner London (13 consecutive months of falls)
Outer London (8 months)
The South East (4 months)
Meanwhile, Yorkshire & the Humber recorded a 1.4% annual fall in newly agreed rents, and Scotland saw its first annual decline since 2020 as rent control pressures unwind.
Is Limited Company Ownership Right for You?
Hamptons’ head of research, Aneisha Beveridge, notes that for many landlords, particularly those moving into the 40% income tax bracket, paying corporation tax at 19–25% can be more attractive than higher-rate personal taxation.
However, it’s not one-size-fits-all. Lower-rate taxpayers with no additional income may still find personal ownership more suitable, particularly given rising Companies House fees.
What This Means for Landlords in 2026
Corporate ownership is likely to keep growing
Rent growth is stabilising rather than collapsing
Renewals remain a key opportunity to realign rents with market levels
Upcoming tribunal changes may influence pricing strategies
For most portfolio landlords, the limited company model is no longer a niche strategy, it’s quickly becoming the standard approach.
YOUR NEXT STEPS;
There are more BTL mortgage products now available for Ltd Companies than ever before. A huge mixture of rates and fees, and options for the flexible features that can help you to manage the mortgage deals as time goes by.
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