Date Published 06 August 2019
Rental properties let by company landlords are on the rise, research claims. Analysis by Hamptons International found by the amount of homes let by company landlords has been rising steadily since 2016 when the abolition of mortgage interest tax relief for non-company was first announced.
Countrywise found that 12% of buy-to-lets are owned by a company landlord which is up from 9% in 2015. It has been estimated that company landlords own 641,480 homes in Great Britain. This is 42% more than 2015 when 452,600 properties were let by company landlords. It is thought that rental growth is at its highest level since April 2016 and the average cost of a new let has increased to £986 per month – up 3.4% year-on-year.
Aneisha Beveridge, head of research at Hamptons International, said: `More than one in ten rental properties are now owned by private companies, an indication that the sector continues to professionalise.
`Increasing taxation for private landlords combined with the growth of the build to rent sector has meant that more companies are letting homes than at any time since our records began.
`London, where landlords tend to have higher levels of debt and often the most to gain from corporate ownership, has the largest proportion of homes let by a company. However, it`s not always more profitable to put a buy-to-let into a company as other associated costs come into play.
`Strong rents in the south drove rental growth in June. Low stock levels, particularly in the south, continue to put pressure on rents. Rents rose in six out of eight regions, with the east and Wales recording small falls.`