A record number of buy-to-let companies were set up in 2021. Research published by residential estate agent and property services company Hamptons in its latest Monthly Lettings Index shows that a record 47,400 new buy-to-let companies were formed last year.
That’s a new total of 269,300 buy-to-let UK companies, many of which have set up since the withdrawal of mortgage interest relief for investors with properties in their personal names five years ago. This made it more profitable for some landlords to move buy-to-lets to a company. With half of all buy-to-let (BTL) mortgages taken up by companies, they hold nearly a third (583,000) of outstanding BTL mortgages.
Buying to rent can be an attractive option for many, particularly in areas where rents are rising. Hamptons says average monthly rents in southern England hit the plus-£1,000 mark for the first time at the end of 2021, as UK rents overall rose 7.2% year-on-year. Indeed, London and the South East are home to 45% of new BTL companies.
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