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Company landlords now own almost 650,000 rental properties

Some 12% of properties in the private rented sector are now owned by a company as tax changes make private landlords feel the pinch, fresh data from Hamptons International shows.

The research found that company landlords own 641,480 buy-to-let homes in Great Britain, with landlords in London most likely to own a buy-to-let via a company structure.

The average cost of a new let in Great Britain increased to £986 per calendar month (pcm) in June, up 3.1% year-on-year, fuelled primary by growth in the South West where rents are up 4.5% over the same period, Hamptons said.

Significantly more buy-to-let purchases are now being made via a corporate vehicle, as landlords respond to the government’s tax changes, including the phasing out of mortgage interest tax relief and the introduction of the 3% stamp duty surcharge on additional property acquisitions.

Aneisha Beveridge, head of research at Hamptons International, said: “Increasing taxation for private landlords combined with the growth of the build-to-rent sector has meant that more companies are letting homes than at any time since our records began.

“London, where landlords tend to have higher levels of debt and often the most to gain from corporate ownership, has the largest proportion of homes let by a company.

“However, it’s not always more profitable to put a buy-to-let into a company as other associated costs come into play.

“Strong rents in the South drove rental growth in Great Britain in June.  Low stock levels, particularly in the South, continue to put pressure on rents.”

Estimated percentage and number of properties let by corporate landlords in Great Britain: 

Year

% of homes let by company landlords

Estimated number of homes let by company landlords

2008

14%

456,260

2009

13%

449,900

2010

14%

524,540

2011

12%

481,780

2012

10%

443,740

2013

10%

448,080

2014

9%

449,260

2015

9%

452,600

2016

9%

458,280

2017

10%

535,330

2018

10%

537,060

2019 H1

12%

641,480

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