The number of new property companies established in the UK dropped by more than a quarter in October, raising concerns about the level of investment in the private rented sector and the future availability of rental homes.
Figures from mortgage broker Cyborg Finance show that new property company formations fell by 25.4% year-on-year, from 8,070 in October 2025 to 6,020 in October 2026. This represents a reduction of 2,050 newly registered companies.
The figures highlight a significant change in activity throughout the year. Property company formations initially increased by 1% during the first quarter of 2026, but then declined by 22.8% in the third quarter.
Between January and October, a total of 63,926 new property companies were recorded, compared with 74,617 during the same period in 2025. This represents a 14.3% fall, equivalent to 10,691 fewer companies.
If the downward trend continues, 2026 could become the first year since Cyborg Finance began tracking the figures in 2016 to record an annual decline. This would bring an end to nine consecutive years of growth.
Property company formations continue to decline
| Period | 2025 | 2026 | Change |
| January–October | 74,617 | 63,926 | −14.3% |
| July–September | 22,864 | 17,648 | −22.8% |
| October | 8,070 | 6,020 | −25.4% |
The decline comes at a time when landlords are reviewing the costs and financial benefits of investing in property.
Setting up a limited company has become a popular option among buy-to-let investors, particularly those looking to manage their portfolios and plan their tax arrangements. However, the latest figures suggest that fewer investors are establishing new property companies.
Mark Hosker, mortgage adviser at Cyborg Finance, said the change in activity had been particularly noticeable given the positive start to the year.
He explained that property company formations were initially higher than in 2025, but by October the number of new registrations had fallen by more than a quarter. He added that this represented a considerable shift, especially given the growing popularity of limited company ownership among property investors.
Could fewer property companies affect rental supply?
The slowdown also raises questions about the future supply of homes in the private rented sector.
If the reduction in company formations reflects a wider decline in buy-to-let investment, it could eventually affect the number of rental properties available to tenants.
This may create additional challenges for letting agents and renters, particularly in locations where demand for accommodation already outstrips supply.
Lower investment could also restrict opportunities for landlords to expand their portfolios, potentially adding further pressure to rents in areas experiencing housing shortages.
However, the figures do not confirm that landlords are selling up or that the overall number of rental properties is falling.
Fewer new companies do not necessarily mean fewer landlords
Hosker warned against treating the decline in company registrations as direct evidence that landlords are leaving the market.
He explained that investors who already own a limited company can continue purchasing additional properties through that business without having to establish another company.
Nevertheless, the figures indicate that fewer new property company structures are being created. It remains unclear whether this reflects landlords changing their investment plans, concerns about the financial returns from property or a more established market.
Separate research from Hamptons also found signs of a slowdown, reporting an 8% annual reduction in buy-to-let company incorporations between January and August 2026.
However, the two sets of figures are based on different methods of collecting data and should not be compared directly.
Cyborg Finance’s research uses Companies House records and focuses on two property-related Standard Industrial Classification (SIC) codes. These cover businesses involved in purchasing and selling their own property, as well as those letting or operating owned or leased real estate.
The figures do not confirm whether every company owns residential rental properties or represents a new landlord entering the market. Existing property companies can also expand their portfolios without registering additional businesses.
The tracker is based on recorded company information rather than a complete historical register of incorporations. As Companies House updates its records, the figures may therefore change.
Despite these limitations, the data points to a considerable reduction in new property company formations during 2026. Whether this slowdown will lead to lower investment and fewer rental homes remains uncertain.
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