The number of companies set up to hold buy-to-let portfolios is forecast to grow by 7.6 percent in 2026, bringing the total to more than 432,000 despite higher mortgage costs for limited company borrowers.
Analysis by lettings technology firm Propoly shows that 401,744 such companies were operational in 2025 – up 13.7 percent on the previous year, equivalent to 48,252 new company formations.
A decade of growth
The data reveals that SPV company formations have grown every year since 2015, with annual increases of up to 35.9 percent. The trend has been driven primarily by tax efficiency, as limited company landlords can offset mortgage interest against profits – a relief unavailable to individual landlords since 2020.
This follows Landlord Knowledge’s reporting on limited company purchases hitting 43 percent of all BTL transactions, with Paragon Bank data showing incorporation has become the dominant structure for new acquisitions.
RRA accelerating shift
A Propoly spokesperson said: “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.”
However, the firm noted that limited company mortgage rates are typically higher than personal BTL products, and transferring property into a company can trigger Stamp Duty and Capital Gains Tax liabilities.
What this means for landlords
- If you’re considering incorporation: Take professional tax advice before transferring properties – SDLT and CGT costs can outweigh long-term benefits for smaller portfolios.
- Watch for: The April 2027 income tax changes, which will further widen the gap between personal and corporate tax treatment for landlords.
- Bottom line: Incorporation makes sense for growing portfolios and new purchases, but existing landlords with mortgaged properties face significant transfer costs.
Editor’s view
The incorporation trend is now baked into the sector’s structure. With 43 percent of purchases through companies and the total approaching half a million, this is no longer a niche strategy – it’s the new default for serious investors. The RRA will only accelerate the shift.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 1 April 2026
Sources: Propoly
Related reading: Limited company BTL hits record 43% of purchases as SPV trend accelerates
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