The number of buy-to-let companies formed in September reached its highest monthly total since 2007, as landlords increasingly incorporate to mitigate higher taxes and interest rates.
According to Hamptons, there were 6,493 landlord incorporations last month and 51,295 since the start of 2025 — the busiest nine-month period since records began 18 years ago.
Mortgage broker Howard Levy (SPF Private Clients) said: “I’m approached by two or three landlords every week about incorporating. For those with larger portfolios, it usually makes sense given the tax changes of recent years.”
Landlords operating through a limited company can still deduct 100% of mortgage interest from rental income — a benefit phased out for individuals from 2017. Incorporation also allows corporation tax to be paid on profits (19%–25%), instead of higher personal income tax rates.
Hamptons’ Aneisha Beveridge noted that the trend is driven by existing landlords converting portfolios, not by new entrants to the market. “While new buy-to-let purchases haven’t dropped off a cliff, they are running low,” she said.
Meanwhile, lending options for company landlords have expanded. Moneyfacts reports 1,730 limited-company mortgage deals now available, up from 841 a year ago. Affordability tests are also more lenient — limited companies typically need rental cover of 125%, compared with 160% for individual landlords.
However, company loans attract slightly higher interest rates (around 5.0%–5.5%) and upfront costs such as stamp duty and capital gains tax when transferring properties into a company structure.
Beveridge concluded that incorporation points to long-term commitment among landlords: “Because of the costs involved, these investors are clearly planning to stay in the market for the long run.”
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