Buy-to-let landlords in the UK are increasingly turning to incorporation as the Renters’ Rights Act approaches, signalling a shift in how property portfolios are managed. Recent data highlights a steady rise in the number of companies established to hold rental properties, reflecting landlords’ responses to evolving legislation and market conditions.

Growth in Buy-to-Let Incorporation

According to data from software company Propoly, the number of companies set up to hold buy-to-let properties has risen annually since 2015, with increases reaching as high as 35.9% in some years. By 2025, an estimated 401,744 such companies were operational across the UK, marking a 13.7% increase from the previous year. This growth equates to 48,252 new companies created in 2025 alone.

Propoly forecasts that this upward trend will continue in 2026, with a further 7.6% increase expected. This projection suggests an additional 30,354 companies will be formed, bringing the total to 432,098. These figures underscore the growing popularity of incorporation as a strategic choice among landlords.

The Impact of the Renters’ Rights Act

Sim Sekhon, group CEO at Propoly, explains that while tax efficiency has historically driven incorporation, the impending Renters’ Rights Act is now a significant factor influencing landlords’ decisions. The Act is anticipated to introduce stronger tenant protections and impose greater responsibilities on landlords, covering areas such as tenancy management, compliance, and dispute resolution.

“For many, this will mean tighter margins and a greater administrative burden, which is prompting a reassessment of how their portfolios are run,” Sekhon said. He emphasises that as the private rental sector becomes more regulated, landlords are recognising the need to operate in a more formal, business-like manner, with limited company structures supporting this transition.

Advantages of Operating Through a Company

Operating via a limited company can provide landlords with a clearer framework for managing the increased responsibilities brought about by new legislation. Sekhon notes that incorporation allows landlords to take a longer-term, more strategic approach to their investments, facilitating better organisation of finances and easier reinvestment.

“It enables better organisation of finances, easier reinvestment, and a structure that is more aligned with running a professional rental business rather than holding property as a sideline,” he said. However, he also cautions that incorporation is not suitable for everyone, given the additional costs, tax considerations, and lending challenges involved.

Landlords are advised to carefully evaluate these factors before deciding to incorporate, especially as legislative changes continue to reshape the rental sector.

Important Considerations for Landlords

Property118 currently does not recommend Section 162 incorporation for landlords with mortgages due to ongoing legal uncertainties regarding the treatment of mortgage liabilities. This highlights the importance of seeking professional advice and thoroughly assessing individual circumstances before restructuring property ownership.

For landlords contemplating their options—whether selling, expanding, or restructuring portfolios—consultations with experts can provide valuable insights. Such discussions are particularly beneficial for those with established portfolios and modest borrowing, helping to forecast outcomes under various scenarios and optimise asset management strategies.

What this means for landlords

The rise in buy-to-let incorporation reflects a broader trend towards professionalisation within the private rental sector. As regulations tighten and tenant protections increase, landlords must adapt their business models to remain compliant and financially viable. Incorporation offers a pathway to manage these challenges more effectively, but it requires careful consideration of the associated financial and legal implications.

Landlords should remain informed about legislative developments and seek tailored advice to ensure their portfolios are structured optimally for the changing landscape.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

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TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/