UK buy-to-let limited companies surpass 400,000 total

The number of limited companies owning buy-to-let properties in the UK has exceeded 400,000. This increase comes from recent analysis by Hamptons, based on Companies House data. In 2024 alone, over 61,500 new buy-to-let companies were established, marking a 23% rise compared to the previous year. The rise in limited companies is largely due to the tax benefits they offer. Owning property through a limited company allows landlords to pay a lower corporation tax compared to income tax, which is applied to individuals holding properties in their personal names. Since February 2016, the count of buy-to-let companies has surged by 332%, reflecting a growing shift in how real estate investors manage their assets. Currently, about 680,000 buy-to-let properties are held in this limited company structure across England and Wales. Many landlords are opting to transfer properties from personal ownership to limited companies, seeking to take advantage of more favorable tax structures. According to Hamptons, around 70-75% of new buy-to-let purchases are now made through a company. This trend has intensified since 2016 when tax changes reduced relief for personal owners. The growth has made buy-to-let companies more common than any other type of registered business in the UK. However, there are factors that may slow this growth. Increasing stamp duty rates and the potential for falling mortgage rates might deter some investors from moving properties into a company structure. Additionally, each limited company incurs more administrative work and costs compared to personal ownership, which may not benefit all landlords, especially those with smaller mortgages.