Huge rise in buy to let properties held in limited companies 

The number of companies owning buy-to-let properties in the UK has grown significantly, now exceeding 400,000. Between 2016 and 2025, the number rose from 92,975 to 401,744. Tax reforms starting in 2016, such as the withdrawal of full mortgage interest tax relief, drove this trend by making limited company ownership more tax-efficient for many investors.

In 2024, a record 61,517 new companies were established—a 23% increase from the previous year—adding to the 680,000 buy-to-let properties held in limited company structures across England and Wales. This figure is rising by 70,000 to 100,000 annually.

Hamptons suggests that without the tax changes, 223,000 fewer companies would have been formed, with most buy-to-let properties staying in personal ownership. However, higher stamp duty rates might limit the creation of new companies moving forward. Aneisha Beveridge of Hamptons notes that limited companies have become the preferred structure for new investors due to current tax benefits, but 2024 may represent a peak in new company formations.