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Market trends and insights on the growth of limited companies
If we were in doubt that Government policy could considerably shift the dial regarding the UK’s housing and property markets, then we need to look at what has happened within the buy to let sector since the mid-2010s.
Recent data set out of Hamptons revealed that there are now 400,000 individual companies set up to hold rental property. Given the cutting of mortgage interest tax relief for those holding properties as individuals, landlords would move towards corporate structures, particularly when it came to any new purchases.
For some landlord borrowers, particularly those who intend to hold properties long-term and accumulate them over time, it might still be worth moving individual buy to let properties to their limited companies.
According to Hamptons’ research, 70,000 to 100,000 buy to let properties are added to limited companies each year; while some will be moved from the individual’s name, many will be new purchases. In 2024, for example, 61,517 new limited companies alone were set up, a 23% increase from the previous year.
Overall, limited company buy to let is going to remain a considerable part of the sector. Advisers must be aware of how clients want to secure the finance they need and how lenders like ourselves are increasingly tailoring our offering to this market space. It will pay to be the adviser of choice for limited company landlords throughout 2025 and beyond.
*This article was originally published on The Intermediary
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