Property-company formations fall 25.4% in October as 2026 slowdown continues

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

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