How many property companies are in the UK?
There were 345,426 active buy-to-let companies in the UK at the start of 2024, up 12 per cent from 309,643 in January 2023.
UK buy-to-let companies hold a total of 615,077 properties, an 82 per cent increase from the end of 2016.
Of the 615,077 limited company buy-to-let properties, 458,838 (75 per cent) have a mortgage against them.
While the total number of outstanding buy-to-let mortgages fell three per cent over the last 12 months, mortgages on properties held in a limited company increased by 10 per cent during the same period.
According to Hamptons, this means that limited company landlords are more likely to have a mortgage than investors who own rental property in their personal name.
Will there be more buy-to-let companies set up in 2024?
Despite a surge in the number of new buy-to-let companies in 2023, the rate of growth fell compared to previous years.
The three per cent rise recorded between 2022 and 2023 is significantly lower than the 14 per cent rise between 2020 and 2021 and the 30 per cent rise between 2019 and 2020.
According to Aneisha Beveridge, Head of Research at Hamptons, landlords who incorporated in 2023 did so to shelter themselves from high interest rates.
“Despite last year’s slowing sales market, there was no let-up in landlords rushing to incorporate.
“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.
“Meanwhile the number of new landlords setting up shop has remained relatively muted,” she said.