The number of companies holding buy to let property has now topped 400,000 says lettings brand Hamptons.

The agency – now part of Connells – says the number of BTL companies in the UK rose from 92,975 to 401,744 between February 2016 (when full mortgage interest tax relief started to be withdrawn) and February 2025.

A record 61,517 new limited companies were set up in 2024, a 23% increase on what had previously been a record set in 2023.

There are 680,000 buy-to-let properties held in a limited company structure across England & Wales, with the number rising by 70,000 to 100,000 annually.

Hamptons suggests that has the tax changes not come into effect and the growth in limited company numbers remained on its pre-2016 trajectory, around 223,000 fewer companies would likely have been incorporated over the last nine years.

Rather, most buy-to-let properties would have remained in personal ownership, where investors declare taxes in their annual self-assessment.

Aneisha Beveridge, Head of Research at Hamptons, says: “The limited company is now the structure of choice for the next generation of investors.  

“Current tax rules mean that most, although not all, new investors find themselves better off in a company structure than owning an investment property in their own name.  This means the number of limited companies is likely to continue its upward trajectory for the foreseeable future.

“But 2024 may prove to be a high watermark for the number of new companies set up to hold buy-to-let property.  

“Higher stamp duty rates will be a big barrier for investors looking to move an existing rental home from a personal name into a company structure.  

“It will also weigh down on the number of new buy-to-let purchases overall, likely suppressing the number of companies being set up.”