Buy-to-let company formations may have peaked since tax changes
Summary
Research from Hamptons suggests the surge in buy-to-let company incorporations may have peaked, with new formations falling in 2026 as fewer existing landlords transfer properties into limited company structures. The article also notes continued growth in the total number of buy-to-let companies and accelerating rental growth, particularly outside London.
Why it matters
Surveyors involved in valuation, landlord portfolios and investment advice should note the changing ownership structures in the private rented sector, as these can affect transaction patterns, tax considerations and demand for professional services. The reported rise in rents and compliance pressure may also influence investor behaviour and tenant affordability assessments.
Key points
- New buy-to-let company incorporations fell 8% in the first eight months of 2026 compared with 2025.
- The slowdown is linked to fewer existing landlords transferring properties into limited company structures.
- Despite the decline in new formations, the total number of buy-to-let companies continues to rise.
- Hamptons says tax changes, including Stamp Duty and capital gains tax on transfers, have driven incorporation activity.
- Rental growth for new lets accelerated, with stronger increases outside London.
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