According to the report by Hamptons, these limited companies currently own a total of 615,077 properties across England and Wales, marking an 82% increase over the last seven years.
Over the first half of 2023, the number of new buy-to-let companies was around 2% lower than the same period in 2022 (following the September 2022 Mini-Budget).
The second half of the year, however, saw this number skyrocket to around 9% due to higher mortgage rates.
Data also revealed that the total of outstanding buy-to-let mortgages dropped by 3% over the last 12 months, but mortgages on properties owned by limited companies increased by 10% over the same time.
Aneisha Beveridge, head of research at Hamptons, said: “Despite last year’s slowing sales market, there was no let-up in landlords rushing to incorporate. Rather, the record number of companies set up to hold buy-to-let homes suggests a long-term commitment from landlords – particularly given the upfront costs associated with incorporating.
“The growth has been driven mostly by existing landlords moving properties into a corporate structure to shelter themselves from higher interest rates. Meanwhile, the number of new landlords setting up shop has remained relatively muted.
She added: “For as long as landlords continue rolling off cheap fixed-term mortgages onto rates that are twice or triple what they were paying, the number of homes being put into a corporate structure will remain high. The number of buy-to-let incorporations each year is likely to continue running in the region of 40,000 to 50,000 for the foreseeable future.”
Further Reading: Take a look at our UK interest rates chart for the latest figures, as well as our guide to buying property as a company for more information!
