A record 66,587 buy-to-let limited companies were set up in 2025, up 8% on 2024 and 363% higher than a decade ago as landlords continue to pivot towards corporate structures.
Analysis by Hamptons shows buy-to-let firms were the second most common type of new company formed last year, behind only mail-order businesses.
By the end of 2025, 443,272 buy-to-let companies were registered at Companies House – almost five times the 2016 total.
The surge reflects landlords responding to tax changes first introduced in 2016, when mortgage interest relief was restricted for higher-rate taxpayers.
OFFSET MORTGAGE INTEREST
Limited companies can still fully offset mortgage interest against corporation tax, making them increasingly attractive – articularly as frozen personal tax thresholds have dragged more investors into the 40% bracket.
Around 75%-80% of all new buy-to-let purchases are now made via limited companies, although rising incorporation numbers also include landlords transferring existing properties into corporate structures.
The trend shows little sign of slowing. January 2026 saw 5,922 new buy-to-let companies formed, 11% more than a year earlier.
TAX ADVANTAGES
Aneisha Beveridge (main picture, inset), head of research at Hamptons, says: “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.”
BETTER OPTION
And she adds: “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.
“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.”
