At Ashburnham Insurance, we’ve spent years working alongside landlords and property investors across the UK, and few trends have been as striking in recent years as the rise of the limited company landlord.
According to new figures reported in March 2025, buy-to-let companies have officially become the most common type of business in the UK, overtaking other traditional sectors. Today, more than 400,000 active buy-to-let companies are registered, with more than 61,500 starting up in 2024 alone, a record year for landlord incorporations. That’s a whopping 23% year-on-year increase. So, what’s driving this shift?
Tax Reform Sparked a New Strategy
Much of that growth can be attributed to tax reforms in 2016, when full mortgage interest tax relief was eliminated for individual landlords. Landlords who used to be able to deduct mortgage interest from rental income had to face new, higher tax bills when running their portfolio under personal ownership. Many, especially with multiple properties, moved into limited company structures where the tax rules were more friendly.
Landlords have been able to offset mortgage interest as a business expense and benefit from lower corporation tax rates as a result of this strategic switch, effectively enabling them to preserve more profits in their property businesses to reinvest. It’s a shift that is changing the face of the average buy-to-let landlord in the UK, dragging the private landlord into the corporate property entrepreneur ground.
The Market is Evolving
While incorporation has become increasingly common, it hasn’t been all smooth sailing for landlords. The buy-to-let sector faced a moment of reckoning in 2024 when, for the first time in nearly 30 years, the number of rental properties began to decline. Rising interest rates and tighter lending criteria pushed some landlords to sell up, scaling back portfolios or leaving the market entirely.
However, this hasn’t slowed the growth of company landlords. Limited company buy-to-let registrations quadrupled between 2016 and 2025, showing that the structural shift is continuing even as the broader market faces headwinds.
For tenants, there’s a silver lining. According to Hamptons’ February 2025 Lettings Index, the average monthly rent for new lets rose by just 1% year-on-year, bringing the national average to £1,355. That’s the slowest rate of rental growth since September 2020 and suggests the market may be starting to stabilise.
Perhaps most surprising is the shift in London, where rents for new lets fell by 2.8%, the first recorded drop since pandemic-related declines. As rental growth cools and affordability becomes more of a focus, landlords will need to ensure they’re optimising their properties’ performance, both financially and operationally.
How Ashburnham Insurance Supports Modern Landlords
The buy-to-let business model’s evolution increases the significance of protection. Landlords who operate limited companies usually manage several properties through letting agents, but experience more frequent tenant changes. Risk management requires specialist techniques to handle the complexity and large size of these operations.
That’s where Ashburnham Insurance steps in. Our landlord insurance solutions provide personalised coverage for properties belonging to individuals or companies, which includes protection for buildings, contents and public liability, alongside malicious damage by tenants among other options. A comprehensive insurance policy is fundamental for company landlords to maintain business operations and achieve tenant contentment.
It is our understanding that each property and landlord requires a unique approach. Our team supports landlords throughout their journey from starting their first rental property to managing extensive portfolios by providing essential insurance protection at affordable rates. Our team monitors the latest legal and regulatory updates to allow your focus on business growth while we handle risk management.
The Future of Buy-to-Let
The expansion of buy-to-let companies represents a fundamental change to the UK rental market rather than just a passing trend. The growth of buy-to-let companies remains strong as more than 10% of new businesses established in 2024 operate under this model.
Ashburnham Insurance designed our insurance offerings to fulfil the unique requirements of limited company landlords. We offer comprehensive insurance policies that protect both individual properties and complete portfolios against diverse situations, including accidental damage and loss of rent and liability cover.
We take pride in supporting modern landlords by providing them with essential tools and coverage to succeed. As you increase your property holdings, protect current investments or explore insurance options, we provide the necessary support.
If you’re a landlord operating through a limited company or thinking about making the switch, talk to Ashburnham Insurance about safeguarding your assets with comprehensive, flexible landlord insurance.