The number of buy-to-let companies registered in the UK reached 443,272 by the end of 2025, representing a near five-fold increase from 91,278 recorded in 2016, according to data from Hamptons.
The research shows that 66,587 new companies were formed to hold buy-to-let property in 2025, an 8% increase on 2024’s total of 61,517 and a 363% rise over the last decade. New incorporations in early 2026 are running 11% above the same period last year, with 5,922 new buy-to-let limited companies established in January 2026 alone.
Tax considerations drive structural shift
The growth in company formations comes despite investors accounting for a smaller proportion of overall home purchases. Investors bought 10.8% of homes in 2025, down from 11.9% the year before, indicating a structural shift in how landlords choose to hold property rather than an expansion in overall investor activity.
More than three-quarters of new buy-to-let purchases are now made through limited companies, according to the analysis. This compares to a significantly lower proportion a decade ago, before changes to mortgage interest tax relief affected individual landlords.
Aneisha Beveridge, Head of Research at Hamptons, said: “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.”
Market implications
The shift towards limited company ownership has implications for the rental market structure, with an increasing proportion of rental properties held within corporate entities rather than by individual landlords. This trend began accelerating after 2016, when tax changes reduced the ability of higher-rate taxpayers to offset mortgage interest against rental income.
Buy-to-let companies now represent one of the most common types of business entity registered at Companies House, with only mail order firms exceeding their numbers in new registrations.
