Buy-to-let landlords in the UK are increasingly choosing to incorporate their property portfolios as the Renters’ Rights Act approaches. This trend reflects a growing desire to manage rental businesses more formally amid rising regulation and tenant protections.

Rising incorporation of buy-to-let portfolios

Data from Propoly, a property software company, shows a steady increase in the number of companies formed to hold buy-to-let properties since 2015. In 2025, there were an estimated 401,744 such companies operating in the UK, representing a 13.7% rise from the previous year. This equates to 48,252 new companies created in 2025 alone.

Propoly forecasts that this growth will continue in 2026, with a further 7.6% increase expected. This would add another 30,354 companies, bringing the total to 432,098. The data highlights a clear upward trajectory in landlords opting for a company structure to hold their rental assets.

The impact of the Renters’ Rights Act

Sim Sekhon, group CEO at Propoly, explains that while tax efficiency has traditionally driven incorporation, the forthcoming Renters’ Rights Act is now a significant factor influencing landlords’ decisions. The Act is expected to introduce stronger tenant protections and impose greater responsibilities on landlords, including 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 notes that the increasing regulation is encouraging landlords to adopt a more formal, business-like approach to managing their properties, with limited company structures naturally supporting this shift.

Advantages and considerations of incorporation

Operating through a limited company can provide landlords with a clearer framework for managing the enhanced responsibilities brought about by new legislation. Sekhon highlights that incorporation allows for better organisation of finances, facilitates reinvestment, and aligns with running a professional rental business rather than treating property as a sideline.

However, he cautions that incorporation is not suitable for everyone. Additional costs, tax implications, and challenges with lending must be carefully considered. Despite these factors, the evolving legislative landscape is expected to lead more landlords to evaluate whether a company structure offers the resilience and flexibility needed to adapt.

What this means for landlords

As the private rental sector faces increased regulation, landlords should review their portfolio structures and consider the benefits and drawbacks of incorporation. Those with established portfolios and modest borrowing may find it particularly beneficial to consult with experts to forecast outcomes under different scenarios.

Engaging with professional advice can help landlords make informed decisions about whether to sell, expand, or restructure their holdings to maintain profitability and compliance in a changing market.

Source: Based on reporting from Property118

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