Research from Countrywide shows 20% of homes were company landlord lets in Q1 2017, the highest proportion since records began in 2010.
The study also found the most and least expensive homes on the market are likely to be owned by a company landlord. Over the last year, a quarter of homes let by a company landlord cost less than £500 per calendar month. Meanwhile nearly one in ten homes (9%) let for between £1500 and £2000 pcm were owned by a company landlord, compared to 6% owned by non-company landlords.
Johnny Morris, research director at Countrywide, said:
“The number of rented homes owned through a company is on the up. The incoming tapering of mortgage tax relief is likely driving the increase. Companies are generally taxed more favourably, particularly with recent changes by government to tax relief, so in many cases landlords can make cash savings by operating through a company rather than as an individual.”
The new tax system for landlords began being rolled out on April 6 and prevents landlords from being able to deduct mortgage interest costs from their taxable profits on property.