One of the most notable shifts in recent years has been the rapid rise in landlords purchasing and holding rental properties through limited companies.

Latest figures indicate that buy-to-let company formations reached record levels in 2025 — a sign that investors remain active in the rental sector, but are increasingly structuring their portfolios differently to maximise efficiency and flexibility.

Record Levels of Buy-to-Let Companies

More than 66,000 new buy-to-let limited companies were incorporated in the UK during 2025, marking the highest level ever recorded and an increase on the previous year’s total.

The trend has continued into 2026, with thousands of new companies formed in the opening weeks of the year alone.

To put this into perspective, buy-to-let companies were among the most commonly registered types of business in the UK, outnumbering many traditional sectors such as hospitality, construction trades and even estate agency businesses.

Overall, there are now more than 440,000 active buy-to-let companies in the UK, with an estimated 1.5 million rental properties held within corporate structures.

Why Landlords Are Incorporating

Several factors are driving this shift toward company ownership.

The introduction of mortgage interest tax relief restrictions for individual landlords in 2016 was an early catalyst. Since then, additional economic pressures — including rising mortgage costs and frozen personal tax allowances — have made incorporation increasingly attractive for many investors.

In a corporate structure, landlords can typically:

• Offset mortgage interest costs fully against rental income
• Pay corporation tax, which may be lower than higher-rate income tax
• Retain profits within the company to reinvest in additional property

For landlords whose rental income pushes them into higher tax brackets, these advantages can make a significant difference to overall investment returns.

Portfolio Growth and Joint Investment

Another emerging trend is the growing number of buy-to-let companies formed with multiple shareholders.

This reflects a shift toward collaborative investment models, where families, business partners or private investor groups combine capital to acquire and manage property portfolios.

Over the past decade, the proportion of newly formed buy-to-let companies with more than one shareholder has increased steadily, suggesting landlords are increasingly viewing property investment through a corporate and strategic lens.

London Investors Looking Nationwide

Interestingly, a large proportion of buy-to-let companies registered in London are now investing beyond the capital.

While London remains one of the world’s most desirable property markets, many investors are diversifying geographically to access stronger yields and different price points.

In practice, this means London-based landlords are increasingly building mixed regional portfolios, combining capital growth prospects in the capital with income-focused investments elsewhere in the UK.

Buy-to-Let Still a Significant Market

Despite headlines about landlords leaving the sector, the continued growth in company formations demonstrates that property investment remains an important asset class.

Investor purchases now represent a slightly smaller proportion of overall housing transactions than in previous years, but the market is clearly evolving rather than disappearing.

Professional landlords — particularly those with longer-term investment horizons — are adapting to new regulatory and tax environments rather than exiting altogether.

Is Incorporation Right for Every Landlord?

While limited company ownership has become increasingly popular, it is not always the best solution for every landlord.

For example, investors who:

• Earn little income outside rental income
• Remain within the basic income tax band
• Hold only a small number of properties

may find that owning property in their personal name remains more tax efficient.

Because the financial implications vary significantly depending on an individual’s circumstances, landlords should always seek professional tax advice before restructuring their portfolios.

What This Means for Prime Central London

For Prime Central London investors, corporate ownership structures are becoming increasingly common, particularly among international buyers and professional landlords managing larger portfolios.

These investors often take a long-term view of London property, prioritising stability, wealth preservation and global diversification.

As the regulatory environment continues to evolve, structuring ownership efficiently will remain an important part of successful property investment.

Winkworth’s View

At Winkworth, we believe the continued growth of buy-to-let companies demonstrates the enduring confidence investors have in the UK rental sector.

Rather than retreating, many landlords are refining how they invest — adopting more sophisticated structures and strategies to navigate changing economic conditions.

For those investing in London’s prime property market, the long-term fundamentals remain compelling:

• Strong international demand
• Limited housing supply
• London’s global status as a financial and cultural hub

These factors continue to support the attractiveness of property as a long-term investment.

Considering a Buy-to-Let Investment?

If you are exploring buy-to-let opportunities or reviewing how your property portfolio is structured, Winkworth can help with:

• Rental and investment appraisals across Prime Central London
• Advice on acquiring highquality rental properties
• Guidance on lettings compliance and regulatory changes
• Full property management services for hands-off ownership

Contact your local Winkworth office today for expert insight into investing in London’s evolving rental market.

Source: Primeresi and Hamptons