Rising Rental Income Taxes: How Are Landlords Responding?

The Letting Partnership is delighted to have been featured in national newspaper The i Paper, with our Chief Operating Officer, Chris Mason, sharing his expert insights on how landlords are responding to higher rental income taxes.

Published on 6 November 2026, the article, "The tactic landlords are using to avoid higher taxes on rental income," explores why landlords are considering limited company ownership and the financial implications of making the switch.

The article also highlights our research, which estimates that a portfolio of approximately seven rental properties could face nearly £3,500 in additional annual tax under the announced changes.

We're proud to see our research and industry expertise recognised in the national press, contributing to an important discussion about the challenges facing landlords and the wider private rented sector.

With landlords exploring different ways to manage their tax liabilities, limited company ownership is attracting increasing attention. However, the potential benefits depend on individual circumstances, and incorporation is not necessarily a straightforward solution.

1. Are More Landlords Turning to Limited Companies?

As landlords consider the impact of higher rental income taxes, limited company ownership is becoming an increasingly discussed option among buy-to-let investors.

According to analysis from Hamptons, reported by The i Paper, just over 41,000 buy-to-let companies were established during the first eight months of 2026.

Of these, 51% related to newly purchased properties, while 49% involved individual landlords moving towards company ownership.

One potential attraction is the different tax treatment of company profits. However, the overall benefit depends on factors such as mortgage borrowing, portfolio size and how landlords intend to use their rental income.

2. Why Switching Existing Properties Isn't Always Straightforward

There is an important distinction between purchasing a new property through a limited company and transferring one that is already personally owned.

Moving an existing property into a company can trigger Capital Gains Tax and Stamp Duty Land Tax liabilities, alongside potential mortgage refinancing costs.

Landlords must also consider ongoing company administration and the potential tax implications of withdrawing profits.

As Chris highlighted in The i Paper, while company ownership can offer tax advantages, the associated costs may outweigh the benefits, particularly for landlords with smaller portfolios.

Those with larger portfolios or plans to reinvest profits may find incorporation more attractive, depending on their circumstances.

3. What Should Letting Agents Be Aware Of?

As landlords reconsider their ownership structures, letting agents may need to manage changes to the legal ownership of properties within their portfolios.

Where a landlord transfers a property into a limited company, agents should consider:

• Landlord details: Confirming the legal owner and updating relevant records.

• Tenancy documentation: Reviewing whether existing agreements and prescribed information require updating.

• Rental payments: Ensuring rent is correctly attributed and payments are made to the appropriate party.

• Client accounting: Keeping accurate records of any ownership changes and associated transactions.

A change in ownership should not be treated as simply updating a landlord's name. Agents should establish the legal and administrative implications before making changes to their systems.

4. What Should Landlords and Letting Agents Consider?

Limited company ownership may offer tax advantages, but the financial benefits will depend on each landlord's circumstances. Before making changes, landlords should consider the associated costs and seek professional tax advice.

For letting agents, staying informed about changes in property ownership and ensuring accurate records and client accounting processes will remain essential.

For further information on the announced tax changes, read our previous blog: Autumn Budget 2026: What Does It Mean for Letting Agents and Landlords?.