Let’s start with the bad news, then dig a little deeper to uncover what’s really happening beyond the usual headlines
Following a wave of Government policy changes and rising costs, the buy‑to‑let segment is feeling the pinch. In addition Stamp duty on second homes has jumped and upcoming EPC C energy efficiency standards (effective by 2030, possibly earlier in 2028), will create extra costs for a Landlord in some cases.
Yet, the market is far from collapsing. Since April 2025, UK rents have continued to climb, albeit at a slower pace—up roughly 7 % year-on-year UK wide.
Some small-scale or accidental landlords are exiting the sector, squeezed by cost, regulation, and compliance pressures—yet returns remain buoyant in yield-rich regions, supported by persistent tenant demand and potential lower borrowing costs.
The Shift
In many cases however, these changes are prompting landlords—especially higher-rate taxpayers—to shift into company status. That shift is backed up with some interesting facts at Companies House.
Over 400,000 companies registered solely to hold BTL properties as of February 2025
In 2024 alone, about 61,500 new limited company BTL businesses were founded — a 23% rise from 2023
No doubt landlords shifting to a company status are influenced by Limited companies offering full deduction of mortgage interest, paying corporation tax on profits, and enjoying more flexible expense claims.
It is estimated that there is about 680,000 buy-to-let properties held in a limited company structure across England and Wales, with the number rising every year. Not all of them are new rental properties – many are being moved from personal names into a limited company owned by the same landlord
In summary, the growth in BTL companies is real and substantial. Driven by tax changes, shifting investor behaviour, strong mortgage volumes, and regional yield opportunities, the UK’s BTL sector has undergone rapid corporatisation. While momentum may ease if costs rise (e.g. stamp duty hikes), current indicators suggest the trend will continue for professional landlords.
For insights into the residential rental market and advice from professional property consultant contact our lettings department by phoning 01252 622550.
A Landlord Focused Agency
At McCarthy Holden our landlords are regarded as one in a million, perhaps unlike in the very large corporate agents where a Landlord could easily become just one in a million.
Because our Landlords are looked after by real people who live and work locally, people who you can speak to on the phone and people who are taking the responsibility of looking after your property, our Landlords experience the difference and benefits.
Our professional team are always available by phone or email and guess what, there are no online bots or automated telephone systems to get in the way of good communication.
So if you are a Landlord who wants one to one reliable service, telephone 01252 622550 for a free property valuation and advice about renting property.
