What’s changed since the 2025 update (January 2026 refresh)
Written by Fiona Simpson, Buy to Let Mortgage Expert, The Mortgage Broker
Book a free landlord review with Fiona, here.
January reality for limited company landlords
January is often when landlords stop, look at the numbers properly, and ask:
“Is my portfolio still working the way I expected it to?”
The Autumn Budget 2025 didn’t flip buy to let on its head overnight. But when you combine it with falling interest rates, upcoming tax changes, and tighter regulation, the way landlords need to plan in 2026 has shifted.
If you own buy to let through a limited company (SPV), this guide walks you through:
- what’s changed
- what hasn’t
- and what’s worth reviewing now, rather than waiting until decisions are forced on you
Quick summary for busy landlords
If you want the headlines first, here’s what matters:
- The Budget increased long-term tax pressure on personally held rental property from 2027-28
- Limited company ownership remains broadly intact, but dividend tax changes from April 2026 affect how profits are taken
- The Bank of England base rate has fallen since 2025, and lenders are starting to respond
- The Renters’ Rights Act 2025 is now part of everyday landlord planning
- EPC proposals could require significant upgrades over the next few years
If you want a quick sanity check on whether limited company buy to let still makes sense for your next purchase or remortgage, a free landlord review can help.
January 2026 update
The Bank of England base rate was cut in August 2025 and again in December 2025, bringing it down to 3.75%.
Mortgage pricing has started to ease and, importantly for landlords, some lenders have reduced stress rates, improving buy to let affordability in certain cases.
1) Interest rates: falling, but not a magic fix
When interest rates fall, it’s tempting to assume buy to let affordability will instantly improve. In reality, it’s more nuanced.
Tracker rates tend to react quickly when the base rate moves. Fixed rates usually move more slowly, because lenders price them based on funding costs and expectations about the future, not just the latest headline.
For limited company landlords, the real opportunity often isn’t the rate itself.
It’s what happens behind the scenes.
If lenders lower their stress rates, you may find that borrowing becomes more comfortable at the same rental income, or that refinancing previously tight deals becomes possible again. That’s why a review can be worthwhile even if you’re not under immediate pressure.
2) Dividend tax changes: why company landlords need to plan earlier
From 6 April 2026, dividend tax rates increase. If you own buy to let through a limited company and regularly take profits out personally, this change matters.
This doesn’t mean limited companies are suddenly unattractive. But it does mean that profit extraction should no longer be left on autopilot.
Some landlords may continue to extract profits as dividends. Others may decide it makes more sense to retain profits inside the company to fund deposits, refurbishments or cash buffers, particularly as regulation and borrowing criteria tighten.
The key point is alignment. Your borrowing strategy, company structure and personal tax position need to work together, not in isolation.
3) Regulation: now part of everyday portfolio planning
Even if your focus today is mortgage rates, regulation still affects the bigger picture.
The Renters’ Rights Act 2025 is now part of the landlord landscape. Over time, changes to tenancy structures, rent increase rules and dispute processes will influence costs, risk and lender appetite.
Regulation is no longer something landlords can deal with “later”. It feeds directly into long-term portfolio decisions.
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4) EPC requirements: proposals you shouldn’t ignore
Energy efficiency hasn’t gone away.
While the previous requirement for all rental properties to reach EPC C by 2025 was scrapped, the government has set out new proposals that landlords should be aware of.
Proposed EPC timelines (England & Wales – subject to legislation)
Under current proposals:
From 2028, new tenancies would need to be in properties rated EPC C or above
From 2030, all existing tenancies would need to meet EPC C
These proposals are not law yet. But if implemented, they would affect a large proportion of the buy to let market, particularly older housing stock.
For limited company landlords, EPCs matter because upgrade costs can reduce returns, lenders are increasingly sensitive to EPC ratings, and properties needing work can be harder to refinance without a clear plan.
The sensible approach isn’t panic. It’s early planning, understanding potential upgrade costs and factoring them into refinancing or acquisition decisions before compliance becomes compulsory.
Scotland: similar direction, different dates
If you hold property in Scotland, current proposals suggest:
EPC C for new tenancies from 2028
EPC C for all privately rented homes by 2033
Again, not yet law but clearly the direction of travel.
Key Budget takeaways (still true today)
The Autumn Budget introduced several measures that landlords still need to factor in:
- Higher tax pressure on personal rental income from 2027-28
- Dividend tax increases from April 2026
- No National Insurance on rental income (for now)
- A high-value property levy from 2028
- SDLT surcharges remaining unchanged
- A slightly easier rates environment, but stress testing still matters
Does this Budget make limited company buy to let more attractive?
For many higher-rate and portfolio landlords, potentially yes, but it isn’t automatic.
Limited companies still come with:
- additional admin and costs
- personal guarantees
- lender scrutiny
- more complex tax planning
The right structure is the one that still works after you model tax, finance and regulation together, not just whichever looks cheapest in a single year.
January 2026 landlord reality check: what to review now
If you’re deciding what to do next, these are the areas worth reviewing now rather than waiting:
Cash flow resilience
Stress-test your portfolio against a “still-not-perfect” scenario, not just today’s best rates.
Refinancing strategy
If several deals end in 2026, look at product transfers versus remortgaging, and whether longer fixes improve certainty or affordability.
Profit extraction planning
With dividend tax changes coming in April 2026, check whether your current approach still makes sense.
Regulatory exposure
Factor in both tenancy reform and future EPC expectations, including budgeting for upgrades.
Acquisition costs
All-in costs still matter. Deposit, SDLT, fees, refurb and compliance can quickly undermine yields if one element runs away.
How The Mortgage Broker helps limited company landlords
We help you sense-check:
- limited company versus personal ownership from a mortgage and cash-flow perspective
- lender criteria for SPVs, including SIC codes and background portfolios
- how stress testing may limit or enhance borrowing
- the right questions to take to your accountant before restructuring
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FAQs: Limited Company Buy to Let (Updated January 2026)
A limited company buy to let mortgage is where the borrower is a UK limited company rather than an individual. The company owns the property and receives the rent, and directors or shareholders usually give personal guarantees.
Not always. Tracker rates can react more quickly, but fixed rates depend on lender funding costs and expectations. Affordability and stress testing still matter just as much as the headline rate.
It can be for some landlords, particularly higher-rate taxpayers with significant mortgage interest. However, company costs and profit extraction tax need to be considered. The right approach depends on your wider income and long-term plans.
Yes, if you take profits out personally via dividends. From April 2026, the personal tax cost of extraction increases, so planning ahead with an accountant is important.
Most lenders expect at least 20–25%, and sometimes more for specialist properties or lower-yield areas. Exact requirements depend on rental coverage, property type and lender criteria.
Sometimes, but this can trigger SDLT, Capital Gains Tax and early repayment charges. It’s a numbers exercise that needs coordinated broker and accountant advice before proceeding.
Tax treatment depends on your individual circumstances and may change in future. The Mortgage Broker does not provide tax advice. You should obtain guidance from a qualified tax professional alongside any mortgage advice.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
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