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Sam covers personal finance topics, from the best savings rates to the reasons mortgage lenders say no. He enjoys crunching the numbers to help consumers get ahead.
For the 17th year in a row, the number of companies set up to hold properties has risen, according to estate agency Hamptons.
Many landlords choose to buy through limited companies because company structures allow them to deduct mortgage interest in full and potentially pay lower tax on rental profits.
The latest figures show that since mortgage interest tax relief was restricted in 2016, the number of landlords incorporating has risen by 363%.
Here, Which? considers the pros and cons of incorporating as a landlord, whether the trend will continue and explores what's happening to the cost of rent.
Analysis of Companies House records show that 2025 was another record-breaking year for the number of new companies formed to hold buy-to-let properties, according to Hamptons. In total, 66,587 new companies were set up for this purpose. That's an 8% increase on 2024.
In 2016, when mortgage interest relief began to be phased out, the number of landlords holding property through companies started to rise. Today, more than three quarters of new buy-to-let purchases are made through limited companies. Rising incorporation figures also reflect landlords transferring existing privately owned buy-to-lets into corporate structures.
All of this comes despite landlords accounting for a smaller share of home purchases. Across Great Britain, they bought 10.8% of homes in 2025, down from 11.9% the year before.
A factor behind this may have been the increase in stamp duty. 2025 was the first full year after the increase of two percentage points in stamp duty on buy-to-let properties and second homes.
The incorporating trend has continued into 2026. In January alone, 5,922 new buy-to-let limited companies were set up, 11% more than in the same month last year.
Aneisha Beveridge of Hamptons says: 'Landlords’ shift towards limited company ownership continued through 2025 and shows little sign of slowing this year.
'While the tougher tax treatment introduced in 2016 sparked the initial move into corporate structures, five years of frozen personal allowances, combined with the impact of higher mortgage rates, which company landlords can fully offset against their tax bill, have fuelled the more recent surge.
'As more landlords find themselves pulled into the 40% income tax bracket, paying corporation tax at 19% or even 25% has become increasingly attractive.'
A company structure won't be right for everyone. Your individual circumstances, such as the number of properties you own and whether you’re planning to expand your portfolio, will influence whether it is right for you.
To ensure you consider all of the pros and cons, it may be helpful to take independent advice before making a decision.
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The average fixed buy-to-let mortgage rate has fallen every month since February 2025. It now stands at 4.89%, down from 5.49% a year ago.
This trend looks set to continue. The Bank of England is widely expected to cut the base rate, which is currently 3.75%, in March. This expectation follows a fall in the latest inflation figures and a narrow five-to-four vote to hold the base rate at the start of February.
Forecasts differ on whether there will be further cuts after March. If there are no additional reductions, rates could begin to plateau. If more cuts look likely, the gradual downward trend in rates will continue for a while longer.
