A record 66,587 buy-to-let companies were formed in 2025 — an 8% rise on the previous year and the highest figure in a decade. In total, there are now 443,272 active buy-to-let companies, five times more than in 2016.
The shift reflects frozen income tax thresholds and higher mortgage rates, which have reduced profitability for individual landlords. Many are choosing corporate structures to benefit from corporation tax rates of 19% or 25% rather than paying up to 40% income tax personally.
Currently, around 75–80% of new buy-to-let purchases are being made through limited companies.
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