Analysis of Company House data from Hamptons showed that there were a total of 47,400 new buy-to-let companies incorporated in 2021 across the UK. This is reported to be almost double the number that were set up in 2017, when it was announced that investors with properties in their personal names would no longer be able to claim mortgage interest as an expense. While the number of buy-to-let companies up and running in the UK passed through the 200,000 mark as the country emerged from the first lockdown, by 2021 this figure has risen to a new total of 269,300.

When evaluating limited company activity from a product perspective, 50% of new buy-to-let mortgages were taken out by a company rather than someone buying in their own personal name in 2021. Meaning that around half of all new landlord purchases over the past 12 months used a company to hold their buy-to-let. 40% of these new purchases went into a company which was less than a year old, suggesting newer landlords still account for a sizable proportion of growth.

As outlined in this analysis, the way buy-to-let investors hold property has changed, with the impact of the tax changes made five years ago still shaping landlord buying behaviour in the current market.

The number of limited company offerings is rising across the BTL lending community and the pricing gap continues to close, but there are many differing criteria requirements, with many products brought to market by specialist lenders only available through intermediary channels. A combination which means that seeking expert advice can really pay dividends for buy to let investors.