Buy-to-let companies outstrip takeaways and hairdressers

Towards the end of 2024, we reported on the surge of buy-to-let company registrations. There are no signs that the trend is easing off. Indeed, recent reports reveal that are more companies registered to hold buy-to-let property than there are for any other type of business. Incredibly, there are now more than four times as many buy-to-let companies than there are fast food takeaways or hairdressers.

How many buy-to-let companies are there?

According to This is Money, there were 401,744 registered buy-to-let companies as of February 2025. This is up a staggering 332 since February 2016, when there were only 92,975.

How many properties do they hold?

According to analysis of Company House records by Hamptons, buy-to-let companies currently hold 680,000 properties. This number is rising between 70,000 and 80,000 properties each year.

How are buy-to-let companies distributed?

Unsurprisingly, London and the South East have the highest numbers of buy-to-let companies. The capital has 30% (122,269) while the South East has 13% (50,453).

The smallest numbers of these limited companies are found in Northern Ireland (1% / 5,036) and the North East of England (2% / 9,622).

Interestingly, buy-to-let properties in the North East have the highest gross rental yield. London has the lowest.

Why are buy-to-let firms proliferating?

As we explained in our earlier article, there are tax advantages to holding buy-to-let properties via a limited company. If you hold properties in this way, you can fully offset mortgage interest against rental income. Corporation Tax is also often lower than Income Tax, depending on your income.

Should I hold property via a buy-to-let company?

Whether or not it’s beneficial to hold property via a limited company depends on your circumstances. If you are buying a new rental property, it will in most cases boost your profits if you hold it via a company. Indeed, Hamptons estimates that between 70% and 75% of buy-to-let purchases now go into a company structure.

However, if you currently own rental properties in your own name, it may not be such a good idea to transfer them to a buy-to-let company. This is because you have to ‘sell’ the properties to the company you have set up. This means you pay Capital Gains Tax on profits over £3,000. You’ll also have to pay Stamp Duty Land Tax (SDLT). This now attracts a 5% surcharge for rental properties (up from 3%).

I need help with my portfolio. What do I do next?

If you need help with your rental property portfolio, we recommend you talk to one of our specialist accountants. As the ‘accountants for landlords’ we can offer you tailored advice, designed to maximise your returns. We take into account a wide range of factors, such as how long you plan to invest in buy-to-let, the properties you currently hold (and how), plus the kinds of returns your looking for. We also offer a Landlord Platinum Service with free, MTD compliant software to help simplify your portfolio management. To learn more, simply pick up the phone today or fill in the form below. We’re looking forward to being of help.