Buy-to-let companies are now the most common type of business in the UK, outnumbering fast-food takeaways and hairdressers nearly four to one. More companies are registered to hold buy-to-let properties than any other business type.
The number of buy-to-let companies surpassed 400,000 in February, reaching 401,744 by the end of the month. This marks a fourfold increase from 92,975 in 2016 when tax relief on mortgage interest for individual landlords began to be phased out. Many landlords have shifted their properties into limited companies to reduce tax liabilities.
Despite rising mortgage costs forcing some landlords to sell, the trend continues. A record 61,517 new buy-to-let companies were registered in 2024, a 23% increase on the previous record in 2023. There are now 680,000 rental properties held within company structures in England and Wales, with 70,000 to 100,000 added annually. Some properties were previously owned in personal names and have been transferred into companies.
For tenants, rental growth has slowed. The average new let rose by just 1% to £1,355 in the year to February, the lowest rate since 2020. London rents fell by 2.8%, with inner London down 5.1% year-on-year.
However, the pace of company formations may slow due to the rise in the stamp duty surcharge from 3% to 5%, while falling mortgage rates could encourage some landlords to keep properties in their names.
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