Property-company formations fall 25.4% in October as 2026 slowdown continues
EMBARGOED UNTIL 00:01 GMT, THURSDAY 12 NOVEMBER 2026.
New UK property-company formations recorded by Cyborg Finance fell 25.4% year on year in October 2026, from 8,070 to 6,020—a reduction of 2,050 formations.
The decline marks a sharp reversal from the start of the year. Between January and March, the tracker recorded 1.0% more formations than in the same period of 2025. In July–September, formations were down 22.8% year on year, from 22,864 to 17,648.
Across January to October, the tracker recorded 63,926 formations, compared with 74,617 a year earlier—a decline of 14.3%, or 10,691 fewer formations.
With 2026 drawing to a close, the tracker is on course to record its first annual fall in property-company formations since the series began in 2016—breaking nine consecutive years of growth.
What the latest figures show
| 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 new October figure takes the story beyond the summer. Formations were 25.4% lower than a year earlier, compared with a 22.8% year-on-year fall across July–September—after a 1.0% rise in the first quarter.
What this means for property investors and landlords
The use of limited companies to hold investment properties has become an established feature of the buy-to-let market, with landlords considering company structures for tax planning, financing and longer-term portfolio management.
However, the latest formation figures suggest that the pace at which new property-related companies are being established has slowed considerably.
Mark Hosker, Mortgage Adviser at Cyborg Finance, commented:
"What's interesting is how quickly the picture has changed. We started 2026 with more property companies being formed than the previous year, but by October we're looking at just over a quarter fewer.
"That's a significant change in the pace of new company formations, particularly when you consider how popular limited company structures have become among property investors."
Hosker added:
"A fall in company formations doesn't necessarily mean landlords are leaving the market. An investor who already has a limited company can continue buying properties through it without setting up another business.
"But it does suggest fewer new property-company structures are being established. Whether that's down to landlords reassessing their plans, the economics of new investments or simply a more mature market is something worth watching."
A slowdown, not necessarily a landlord exodus
The figures measure the number of newly incorporated property-related companies observed by the tracker, rather than the number of landlords entering or leaving the market.
A single company can hold multiple properties, while existing companies can continue purchasing property without creating additional legal entities.
Read the full research and latest figures in graphs and tables:
https://cyborg.finance/research/property-company-formations
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Notes to editors
Key figures at a glance
| Measure | Result |
|---|---|
| October 2026 formations | 6,020 |
| October 2025 formations | 8,070 |
| October year-on-year change | −25.4% |
| Fewer October formations | 2,050 |
| January–March year-on-year change | +1.0% |
| July–September 2026 formations | 17,648 |
| July–September 2025 formations | 22,864 |
| July–September year-on-year change | −22.8% |
| January–October 2026 formations | 63,926 |
| January–October 2025 formations | 74,617 |
| January–October year-on-year change | −14.3% |
| Fewer formations January–October | 10,691 |
SIC Code Breakdown for October 2026
We use SIC Codes to identify property companies at Companies House. We use these SIC codes because mortgage lenders require them, either together or individually, for Landlords.
| SIC Code | Companies | Share |
|---|---|---|
| Only 68100 | 1,223 | 20.3% |
| Only 68209 | 2,678 | 44.5% |
| Both 68100 and 68209 | 2,119 | 35.2% |
| Total | 6,020 | 100% |
“Only” means excluding the other qualifying code; companies may have additional SIC codes.
Data for Graphs
The tracker provides historical graphs, tables and CSV downloads.
Similar Research
Separate research by Hamptons also identified a slowdown, reporting an 8% year-on-year fall in buy-to-let company incorporations in January–August 2026. The studies use different populations and methods, so their absolute formation counts are not directly comparable.
Methodology
Cyborg Finance analysed observed property-company formation records sourced from Companies House, comparing equivalent periods in 2025 and 2026.
The research counts each UK private company limited by shares once when its recorded Standard Industrial Classification (SIC) codes include either:
- 68100: Buying and selling of own real estate.
- 68209: Other letting and operating of own or leased real estate.
The tracker is updated as new Companies House data becomes available, so figures on the live research page may change. It uses observed company records rather than a verified complete historical incorporation register; closed-period counts can be revised, and the figures are not seasonally adjusted. Previously dissolved companies may be missing from historical bulk coverage, and current SIC classifications do not prove what a company did when it incorporated.
The dataset identifies companies by their recorded property-related SIC classifications. It does not establish whether each company owns property, whether it operates in residential buy-to-let, or whether an incorporation represents a new landlord entering the market.
About Cyborg Finance
Cyborg Finance provides UK mortgage advice, with advisers who specialise in buy-to-let and landlord finance. The firm publishes research using public housing and mortgage data to help explain developments affecting the property and rental sectors.
- Company Tracker Research: https://cyborg.finance/research/property-company-formations
- Website: https://cyborg.finance
Media enquiries
- Email: [email protected]
- Telephone: 01133203240
For further comment: Mark Hosker, Mortgage Adviser at Cyborg Finance.
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