Hamptons reports that 46,449 companies have been set up to hold buy-to-let property in Great Britain between January and September, a 23% increase on the same period last year.

September saw 5,312 new limited companies established, up 28% on the September 2023 record. At current rates, between 60,000 and 62,000 limited companies will have been set up by the end of 2024, exceeding last year’s 50,004 total.

Hamptons says 59% of these new companies are in the South of England, where higher interest rates have hit hardest and where a larger share of households are higher-rate taxpayers. However, only 42% of properties bought by limited companies so far this year have been in the South, highlighting how many Southern-based landlords are investing in the Midlands or North of England where yields tend to be higher.

There are now 382,007 companies set up to hold rental property and 666,831 properties held inside a buy-to-let limited company structure across England and Wales.

This means the vast majority of new landlord purchases now go into a limited company; so far this year, 70% of new buy-to-let purchases in England and Wales were made using a limited company, with the remaining 30% being bought in personal names.

The growing tax advantages for higher-rate taxpayers have attracted the attention of smaller investors, reports Hamptons. In 2024, 54% of new purchases have been made by companies making their first, second or third purchase.

Aneisha Beveridge (pictured), head of research, says while the benefit of being able to offset mortgage payments before being taxed has been the primary driver for new incorporations over the last few years, rumours of potential increases to Capital Gains Tax or Inheritance Tax are further fuelling the rise.

“An increase in personal tax rates will only widen the gap between the tax paid by landlords who own homes in their own name or a company name further,” she adds.

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