Company PRS Landlords Now Have 640,000 Homes
According to an estate agent chain’s recent report, around 12% of BTL properties are owned by private companies brought about by tax changes.
Their researched figures found that 641,480 private rental homes are owned by company landlords across the UK. It is more than likely that the majority of landlords operating in the capital will do so under the umbrella of a limited company.
The estate agents says that the average new let rents in the UK rose to £986 per calendar month in June which was 3.1% higher year on year, the South West being the main catalyst with rent rises of 4.5% in the same month.
The government’s tax changes for landlords such as the 3% stamp duty surcharge and the phasing out of the mortgage interest tax relief, has forced/persuaded many landlords to register as limited companies.
Aneisha Beveridge, head of research at the estate agent chain, said: “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 Great Britain in June. Low stock levels, particularly in the South, continue to put pressure on rents.”