The number of buy-to-let (BTL) companies in the UK has hit a record 401,744, marking a 332% surge since 2016, according to the Hamptons Monthly Lettings Index.
The rise comes as landlords increasingly opt for limited company structures to navigate tax changes, particularly the phased withdrawal of mortgage interest relief for higher-rate taxpayers.
A record 61,517 new BTL firms were established in 2024, up 23% year-on-year. However, Hamptons suggests higher Stamp Duty rates could act as a barrier to further growth in 2025.
Meanwhile, rental growth has slowed, with new lets rising just 1%, the weakest increase since September 2020. London saw an even sharper downturn, with rents falling 2.8%, and Inner London dropping 5.1%, offering tenants potential bargains.