Since 2016, landlords have steadily been changing how they structure their property portfolios. Faced with major tax changes over the past decade, property investors flocked to set up limited companies, in many cases moving homes out of their personal names to preserve profitability. However, our latest analysis suggests that this incorporation boom may have passed its peak.
Is the buy-to-let incorporation boom slowing?
For the first time since 2008, the full-year creation of new buy-to-let companies is projected to drop.
In the first eight months of 2026, 41,483 buy-to-let companies were formed - an 8% fall compared to the 44,802 set up during the same period in 2025. The shift was particularly noticeable in August, which saw a 22% year-on-year decline in new incorporations.
This slowdown stems from a fundamental change in landlord behaviour. Historically, the buy-to-let incorporation boom wasn't driven by new market entrants buying fresh assets. Instead, it was fueled by a one-off structural shift where existing landlords transferred homes they already owned into limited company structures to mitigate tax changes. Last year, 53% of all properties placed into limited companies were transfers of existing personal assets rather than new purchases.
But that restructuring phase is now approaching the beginning of the end. The vast majority of landlords who stood to benefit financially from incorporating their existing holdings have already done so. For those who haven't, high upfront transfer costs - namely Stamp Duty Land Tax (SDLT) and Capital Gains Tax - mean shifting properties into a company structure is unlikely to be viable.
A Turning Point for Corporate Portfolios
Despite the decline in new formations, company structures remain highly popular. There are still roughly eight times as many buy-to-let companies established today compared to a decade ago, bringing the total number of active property businesses in Great Britain to 469,165 by the end of August 2026.
However, 2026 represents a turning point. For the first time, more than half (51%) of properties entering limited company structures are new property purchases, rather than transfers of personal assets.
Because limited companies remain the preferred vehicle for new investors, future growth in incorporation numbers will no longer mostly come from restructuring old portfolios. Instead, expansion will depend directly on landlords making new purchases and overall investor sentiment. This change means the Treasury will likely see a tapering off of its Stamp Duty windfall, which previously generated around £1.2 billion annually from portfolio transfers alone.
Rental Growth Accelerates Across Great Britain
While portfolio restructuring cools down, upward pressure in the rental market itself continues to build.
August marked the tenth consecutive month of accelerating rental growth for tenants moving into a new home. Across Great Britain, average rents for new lets rose 2.4% year-on-year to reach £1,419 per month - the fastest pace of growth recorded since November 2024.
Regional Highlights:
- The North Surpasses £1,000 pcm: For the first time on record, average rents for new lets in the North of England passed the four-figure mark, reaching £1,014 per month (+2.8% YoY).
- Southern Hotspots: Regions outside London are leading the charge. The South West experienced the highest annual rental growth at +5.4% (£1,348 pcm), followed by the South East at +3.7% (£1,523 pcm).
- London Lags Behind: Growth in Greater London remained comparatively subdued at 1.2% year-on-year, averaging £2,334 per month.
- Existing Tenants: For tenants staying put, average rent increases held steady at 5.6% across GB, with tenants in Scotland seeing the highest average rises at 6.9%.
