Quick answer
Landlords face a busy year. Research from Hamptons published on 14 September shows 41,483 buy-to-let companies were set up in the first eight months of 2026, 8% fewer than a year earlier, suggesting the rush to incorporate may have peaked. Rents for new lets rose 2.4% to an average of £1,419 a month. The Renters' Rights Act has applied in England since 1 May 2026, with a landlord database due to start rolling out from late 2026, and privately rented homes in England and Wales must reach a new EPC C standard by 1 October 2030. If you are buying to let, plan the energy upgrade into the refurbishment and test the refinance before you buy.
Fewer new landlord companies, higher rents
Hamptons tracks how many buy-to-let companies are set up each year. As reported by The Negotiator on 14 September 2026:
- 41,483 buy-to-let companies were set up between January and August 2026, down 8% from 44,802 a year earlier.
- August saw the sharpest fall, with 4,198 new companies against 5,363 a year earlier, down 22%.
- There were 469,165 buy-to-let companies at the end of August, up from 443,272 at the end of 2025.
- Rents on newly let homes rose 2.4% to £1,419 a month across Great Britain.
Aneisha Beveridge, head of research at Hamptons, said "it's likely that new company formations peaked in 2025", and that "the arrival of the Renters' Rights Act seems to be adding further pressure" on new-let rents. Demand from tenants is still strong: the RICS survey for September showed a tenant demand balance of +23%.
The Renters' Rights Act timetable
The government's implementation roadmap sets out the stages in England:
- From 1 May 2026: section 21 "no fault" evictions abolished, tenancies moved to assured periodic tenancies, rent increases limited to once a year, and reformed grounds for possession.
- From late 2026: the private rented sector database begins to roll out, and the Landlord Ombudsman is set up. Mandatory sign-up to the Ombudsman is expected in 2028.
- Later, subject to consultation: the Decent Homes Standard and Awaab's Law for the private rented sector.
Some investors are responding by changing what they buy. NAVA Propertymark said some landlords are moving into commercial property, citing the Act. If that is your plan, see commercial bridging loans and semi-commercial bridging.
EPC C by 2030
The government confirmed in its response to the private rented sector energy consultation that, subject to new legislation, privately rented homes in England and Wales must meet a new EPC C standard by 1 October 2030. The key points:
- Landlords must meet a fabric performance standard plus either a heating system or a smart readiness standard.
- Spending is capped at £10,000 per property over ten years, with lower caps for homes worth under £100,000.
- Homes rated C or above before 1 October 2029 count as compliant until their certificate expires.
- Councils will be able to fine up to £30,000 per property.
The new-style EPCs were due in October 2026 but have been delayed to the second half of 2027. The current minimum of EPC E continues to apply until the new standard takes effect.
What it means for refurbishment and refinancing
For investors who buy, refurbish and let, the energy rules and the rental rules both point the same way: do the work up front. A property bought at auction or below value can be upgraded during the refurbishment, so it is let at a higher standard and is ready for 2030.
- Fund the works with the purchase. Light refurbishment finance can cover insulation, heating and cosmetic work alongside the purchase.
- HMOs and conversions. Licensing and fire safety work add cost and time. HMO bridging loans cover purchases, conversions and refurbishment.
- Agree the exit at the start. A bridge-to-let or bridge to term arrangement agrees the refinance with the bridge, so you know the rent the term lender needs. Our guide to refinancing a bridging loan onto a mortgage covers the rent tests.
- Think about the structure. Our guide to limited company and SPV bridging explains how lenders treat company borrowers. Whether a company suits you is a question for your tax adviser.
Landlords should also note the higher rates of tax on property income from April 2027, covered in our Autumn Budget preview.
Common questions
When did the Renters' Rights Act start?
The first stage started in England on 1 May 2026, abolishing section 21 evictions and moving tenancies onto assured periodic tenancies. The landlord database starts rolling out from late 2026.
What EPC rating will rental properties need?
Under government plans, privately rented homes in England and Wales must meet a new EPC C standard by 1 October 2030, with spending capped at £10,000 per property. Until then the minimum is EPC E.
Are landlords still setting up limited companies?
Yes, but fewer. Hamptons found 41,483 new buy-to-let companies in the first eight months of 2026, 8% fewer than a year earlier.
Can a bridging loan pay for energy improvements?
Yes. A refurbishment bridge can fund the purchase and the works together, with the loan repaid by a buy-to-let mortgage once the property is let.
This article reports news and published figures as at 15 October 2026. It is for general information only and is not legal, tax or financial advice. Bridge & Build Finance is a commercial finance brokerage service, not a lender. Finance is subject to status, lender criteria, valuation, underwriting and approval.
