"Today, limited company ownership makes financial sense for the majority of landlords, with around 75%-80% of all new buy-to-let purchases now made via a company. But it isn’t a one-size-fits-all approach"
- Aneisha Beveridge - Hamptons
The UK saw a record 66,587 buy-to-let companies set up in 2025, marking an 8% rise from 2024 and a 363% increase over the last decade, according to the latest market analysis from Hamptons.
New buy-to-let firms were the second-most common type of new company founded in 2025, trailing only businesses offering mail order services. By the end of the year, 443,272 buy-to-let companies were active at Companies House, nearly five times the 91,278 recorded in 2016. Growth has continued into 2026, with new incorporations running 11% higher than the same month last year, suggesting the trend is still accelerating.
Despite this surge, investors accounted for a smaller share of home purchases. Across Great Britain, 10.8% of homes were bought by investors in 2025, down from 11.9% in 2024.
A rise in corporate ownership began in 2016 when mortgage interest relief for higher-rate taxpayers owning buy-to-let properties in their personal names started to be phased out. Today, more than three-quarters of new buy-to-let purchases are made through limited companies. Rising numbers also reflect landlords transferring existing personally owned properties into corporate structures.
Monthly incorporation data highlights September 2025 as a peak, with 6,493 new companies set up, the highest monthly total on record. In ten of the twelve months during 2025, over 5,000 companies were incorporated.
Buy-to-let companies also ranked among the most common new business types. They were second only to mail-order firms and ahead of management consultants. In comparison, 2025 saw 1.8 times more buy-to-let businesses than takeaway companies, 5.9 times more than pubs and bars, and 9.3 times more than estate agencies.
Ownership structures are shifting, too. The 66,587 companies formed in 2025 were held by 103,280 shareholders. Forty-two percent of these companies had more than one shareholder, up from 34% in 2016, reflecting the growing use of limited companies for co-investment.
Across England and Wales, more than 755,000 property titles are now held in buy-to-let companies, up from 272,964 a decade ago. Analysts estimate this represents roughly 1.5 million properties within corporate structures. While 31% of these companies have headquarters in London, their portfolios extend widely, with 51% of purchases by London-based firms located outside the capital. London-based companies now own more properties in the East of England, South East, North West, and North East than other companies investing in those regions from outside.
Corporate ownership is becoming more widespread beyond property. The total number of companies registered at Companies House has grown 48% over the last ten years, reflecting higher tax burdens on individuals. Since April 2021, the personal allowance and higher-rate tax threshold have fallen by 27% in real terms. If these had kept pace with inflation, the personal allowance would now be £15,995 rather than £12,570, and higher-rate tax would begin at £63,968 instead of £50,270.
For landlords receiving rental income alongside PAYE salaries, freezing allowances has increased the appeal of paying corporation tax through a limited company.
Rental growth
Signs of moderation appeared in early 2026. In January, average rent on newly let homes across Great Britain fell by 0.2% year-on-year to £1,366 pcm. Meanwhile, tenants renewing contracts saw rents rise by 2.8% to £1,305 pcm.
Declines were concentrated in southern regions. Inner London rents fell for the 13th consecutive month and Outer London for the eighth. The South East, closely linked to London, saw four months of annual declines. Together, these areas account for roughly a third of Britain’s rental homes.
Newly let properties in the East of England and South West saw annual growth below 1%, while in Scotland, rents fell by 0.2% for the first time since July 2020. Yorkshire and The Humber experienced six months of falling rents, down 1.4% in January to £915 pcm. London was the only region where renewing tenants saw a decline, with rents down 1.5% to £2,222 pcm, whereas outside London, renewed rents rose 5.2% to £1,070 pcm.
Aneisha Beveridge, head of research at Hamptons (pictured), said, “Landlord’s shift towards limited company ownership continued through 2025 and shows little sign of slowing this year."
"While the tougher tax treatment introduced in 2016 sparked the initial move into corporate structures, five years of frozen personal allowances, combined with the impact of higher mortgage rates, which company landlords can fully offset against their tax bill, have fuelled the more recent surge. As more landlords find themselves pulled into the 40% income tax bracket, paying corporation tax at 19% or even 25% has become increasingly attractive.
“Today, limited company ownership makes financial sense for the majority of landlords, with around 75%-80% of all new buy-to-let purchases now made via a company. But it isn’t a one-size-fits-all approach. For landlords who earn no income beyond their rents and remain lower-rate taxpayers, owning property in personal names can still be the better option, particularly as above-inflation increases have pushed up Companies House filing fees.
“While newly agreed rents continue to record small annual falls, the pace of decline has stabilised. And as has been the case for the last two years, tenants renewing their contracts are seeing the larger rises. With rent increases due to be open to tribunal challenge from May, many landlords are using the months ahead to ensure their rents are aligned as closely as possible to market levels.”
