Number of homes let by company landlords doubles following new tax relief laws | Investors Forum YorkInvestors Forum York

  • 18% of properties let in H1 2018 were owned by a company rather than an individual. This is up 4% compared to H1 2017 and 8% higher than in H1 2016
  • One in four (25%) of homes let in Yorkshire and the Humber in H1 2018 were owned by a company landlord, followed by the North West (20%) and London (19%)
  • London had the highest proportion of company owned lets in 2017, but has since fallen back to third place
  • The average cost of a new let in Great Britain rose to £956 pcm in June 2018, but rental growth slowed to 0.7% down from 1.3% in May

The proportion of homes let by a company landlord rather than an individual rose to 18% in H1 2018, the highest proportion since our records began in 2010 ( see table 1). This is up 4% on H1 2017 and up 8% since H1 2016 when just one in ten homes were let by a company landlord.

TABLE1: Proportion of homes let by a company landlord:

The numbers have been steadily rising since H1 2015 when the Chancellor announced changes to tax relief on rental properties in the 2015 Spring Budget. The changes meant that it became more tax efficient, in some cases, for landlords to own their buy-to-let portfolios through a company rather than hold as a personal asset.

Yorkshire and the Humber interestingly had the highest proportion of rented homes owned by a company landlord. One in four (25%) homes let in Yorkshire and the Humber in H1 2018 were owned by a company landlord, followed by one in five (20%) in the North West and 19% in London (table 2). Last year, London topped the list but has since fallen back.

Commenting Aneisha Beveridge, Analyst at Hamptons International, said:

“The number of rented homes owned by company landlords continues to rise. Nearly one in five homes let so far this year were owned by a company landlord, almost double the proportion in 2015, before the tapering of mortgage interest tax relief changes were announced. Companies are generally taxed more favourably, so in many cases landlords can make cash savings by operating through a company rather than as an individual…..”

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