Property company formations in the UK fell 25.4% year on year in October 2026, from 8,070 to 6,020, according to figures recorded by finance firm Cyborg Finance. That is 2,050 fewer new companies than a year earlier.
The decline reverses the start of the year, when the tracker recorded 1.0% more formations in January to March than in the same period of 2025. Property company formations then fell 22.8% year on year across July to September, from 22,864 to 17,648. Across January to October, the tracker recorded 63,926 formations against 74,617 a year earlier, a decline of 14.3%, or 10,691 fewer formations.
With 2026 drawing to a close, property company formations are on course for their first annual fall since the series began in 2016, which would end nine consecutive years of growth.
The tracker counts newly incorporated property-related companies, not landlords entering or leaving the market. A single company can hold multiple properties, and existing companies can keep buying without creating additional legal entities.
“What’s interesting is how quickly the picture has changed,” said Mark Hosker, mortgage adviser. “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.”
“A fall in company formations doesn’t necessarily mean landlords are leaving the market,” Hosker added. “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.”
