A lettings service forecasts that 2026 will see a 7.6% increase in the number of companies set up to hold buy-to-let portfolios, despite the move involving higher mortgage costs.
An analysis of data on the number of companies that are set up each year to hold buy-to-let properties in the UK shows that an estimated total of 401,744 such companies were operational in 2025.
This marked an annual increase of 13.7%, equivalent to the creation of an additional 48,252 companies compared to 2024.
The analysis reveals that the number of companies being set up to hold buy-to-let properties has grown at pace for the past decade, increasing every year since 2015 with annual increases of up to 35.9%.
Now, Propoly has forecast that in 2026, the number of companies is going to increase by a further 7.6%.
This will see the creation of another 30,354 companies, bringing the UK total to 432,098.
But the firm points out that company buy to let loans often have higher mortgage rates than person loans, while it’s also possible that Stamp Duty and Capital Gains Tax is charged when transferring property into a company.
A spokesperson says: “While tax efficiency has been a major driver behind the rise in incorporation, the upcoming Renters Rights Act is now playing an increasingly important role in how landlords are choosing to structure and manage their portfolios.
“As the sector becomes more regulated, many landlords are recognising the need to operate in a more formal, business-like way, and a limited company structure naturally supports that shift.
“… That said, incorporation still isn’t the right move for everyone. There are additional costs, tax considerations, and lending challenges that need to be carefully evaluated.”
