Buy-to-let firms are UK's largest business type now

Buy-to-let firms have become the largest type of business in the UK, surpassing fast-food shops and hairdressers. There are now over 401,000 buy-to-let companies registered, a significant increase from about 93,000 in 2016. This growth is attributed to landlords shifting their properties into limited companies to reduce tax payments after tax breaks were withdrawn. In 2024, a record 61,517 new buy-to-let companies were established, a 23% increase from the previous year. Despite rising mortgage costs leading some landlords to sell, the average rent increase has slowed. New rents rose by just 1% to £1,355, while rents in London fell by 2.8%, returning to levels seen in May 2023.