Cyborg Finance data shows new UK property company formations fell 25.4 percent in October to 6,020, down 2,050 on the same month last year.
The figures cover the year to October and point to a sharp reversal. Formations rose 1 percent in the first three months of 2026, then fell 22.8 percent in the third quarter to 17,648. Between January and October the tracker recorded 63,926 new companies, against 74,617 a year earlier, a drop of 14.3 percent or 10,691 fewer companies.
Investors who planned to move purchases into a limited company will read the timing as a pause rather than a full retreat. With Budget tax rises lifting rental income rates from April 2027 and mortgage pricing still tight, many appear to be holding off new structures until the cost of buying through a company looks clearer.
October reversal ends nine years of growth
Cyborg Finance, a mortgage broker, analysed Companies House records using two property-related Standard Industrial Classification codes. The method covers firms that buy and sell their own property and firms that let out owned or leased property.
On that basis, October was the weakest month in the 2026 sequence so far. The 25.4 percent annual fall followed a 22.8 percent fall in July to September. If the trend continues through November and December, 2026 would be the first year since the tracker began in 2016 to record an annual decline, ending nine consecutive years of growth.
Separate research by Hamptons pointed in the same direction. It reported an 8 percent annual fall in buy-to-let company incorporations between January and August 2026, although the two studies use different methods and cannot be compared directly.
This follows Landlord Knowledge’s September report on the Hamptons finding of an 8 percent fall in buy-to-let incorporations, which suggested incorporation growth was already losing pace before the autumn. The October Cyborg Finance figures show that slowdown has deepened into a 25.4 percent monthly fall and a 14.3 percent year-to-date decline.
What the data does and does not prove
The tracker counts observed company records rather than a full historical register, and the figures can move as Companies House updates its files. The data does not show whether each new company owns residential rental property or whether it reflects a new landlord entering the market.
Existing companies can also buy further properties without setting up another entity, so a fall in formations does not by itself prove landlords are selling. Mark Hosker, mortgage adviser at Cyborg Finance, said investors should read the figures with care. “What is interesting is how quickly the picture has changed. We started 2026 with more property companies being formed than the previous year, but by October we are looking at just over a quarter fewer,” he said.
Hosker added: “A fall in company formations does not necessarily mean landlords are leaving the market. An investor who already has a limited company can continue buying properties through it without setting up another business. But it does suggest fewer new property-company structures are being established.”
Landlords weighing incorporation face a tighter tax calculation than a year ago. IMLA has warned that Budget tax changes could leave some landlords paying 124 percent of rental profit in tax, while rental income rates are set to rise by four percentage points from April 2027. That shift makes the personal-versus-company choice more pressing for higher-rate payers. Cyborg Finance said it will keep tracking Companies House records through the rest of the year.
What this means for landlords
- If you already hold property in a company: no new filing is needed to keep buying, so the fall does not force a change to your structure.
- If you plan to incorporate new purchases: compare personal tax at 24, 44 or 49 percent from April 2027 with company costs, mortgage rates and lender criteria before you set up.
- Watch for: November and December formation counts – a continued slide would confirm the first annual fall since 2016 and a weaker pipeline of company-held stock.
- Bottom line: fewer new wrappers points to caution on expansion, not proof of an exodus, so price each deal on current finance rather than old incorporation trends.
Editor’s view
The nine-year run of growth in property companies always looked hard to sustain once tax and borrowing costs turned. October looks like the month when caution won. For landlords, the useful signal is narrower: run the post-2027 numbers before paying to incorporate, and do not read a Companies House count as a verdict on demand for rented homes.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 12 November 2026
Sources: Cyborg Finance, Companies House, Hamptons
Related reading: Hamptons: BTL company formations fall 8% by August
