The latest research from Propoly forecasts that 2026 will see a 7.6% increase in the number of companies set up to hold buy-to-let portfolios, as landlords and investors seek out more favourable tax arrangements, liability protections, and easier portfolio management ahead of the new tax year and the impactful rollout of the Renters’ Rights Act.
Propoly has analysed data on the number of companies that are set up each year to hold buy-to-let properties in the UK*, and found 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.
In fact, 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%.
This decade-long upward trend in incorporations was initiated in 2016 when full mortgage interest relief began to be phased out for higher‑rate taxpayers who own buy‑to‑let property in their personal names. Ever since, company ownership has increasingly become the default route for many landlords.
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.
Why are more and more landlords choosing to use companies?
Tax benefits
A growing number of landlords are turning to company structures largely due to the significant tax changes introduced over the past decade, alongside the added flexibility and protections that incorporation can provide.
One of the most influential shifts came with the introduction of Section 24 under the Finance (No. 2) Act 2015, which restricted the ability of landlords to fully deduct mortgage interest from their rental income when properties are held in a personal name. Instead, individual landlords now receive only a basic rate tax credit, meaning higher and additional rate taxpayers can end up paying tax on turnover rather than profit. In contrast, properties held within a limited company allow mortgage interest to be treated as a standard business expense, making it fully deductible and therefore far more tax efficient.
This difference is particularly important for landlords who fall into higher tax brackets. While individual landlords can face income tax rates of up to 40% or 45%, limited companies pay corporation tax on profits, typically at rates of 19% or 25%. As a result, many investors are finding that incorporation allows them to retain a greater proportion of their rental income, particularly when profits are left within the company rather than drawn out immediately.
Easier to grow and manage portfolios
Beyond taxation, company structures can also make it easier for landlords to grow and manage their portfolios. Operating through a company allows profits to be reinvested into additional property purchases more efficiently, while also providing a clearer separation between personal and business finances. This structure is often preferred by lenders when assessing larger portfolios, helping to streamline borrowing and long-term expansion.
Risk-management and succession planning
There are also considerations around risk and long-term planning. Holding property within a limited company can offer a degree of limited liability, meaning personal assets may be better protected in the event of financial difficulty, although in reality this protection can be reduced where lenders require personal guarantees.
At the same time, company ownership can offer greater flexibility when it comes to estate planning, allowing shares in the business to be transferred rather than individual properties. This can make it easier to pass wealth on gradually, particularly for landlords with larger portfolios, while also simplifying potential restructuring.
Potential downsides
While there are many benefits to using a company to hold property assets, there are a number of downsides that are worth consideration.
Company buy-to-let loans often have higher mortgage rates than personal loans; stamp duty and capital gains tax is charged when transferring property into a company; and a company can also create some additional tax complexity, including dividend taxation when taking profits out.
Sim Sekhon, Group CEO at Propoly, commented:
“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.
The Renters’ Rights Act is expected to introduce stronger tenant protections and place greater obligations on landlords, from tenancy management through to compliance and dispute resolution. For many, this will mean tighter margins and a greater administrative burden, which is prompting a reassessment of how their portfolios are run.
Operating through a company can provide a clearer framework for managing these responsibilities, while also allowing landlords to take a longer-term, more strategic view of their investments. It enables better organisation of finances, easier reinvestment, and a structure that is more aligned with running a professional rental business rather than holding property as a sideline.
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. But as legislative change continues to reshape the private rental sector, we expect more landlords to consider whether a company structure offers the resilience and flexibility they need to adapt.”