According to a recent article in The Guardian, buy-to-let companies have become the largest single type of business in the UK, with nearly four times as many registered at Companies House compared to fast-food takeaways or hairdressers. As of February 2025, there were 401,744 companies set up to hold buy-to-let properties, a significant increase from 92,975 in February 2016. This growth is largely attributed to landlords shifting their property holdings into company structures to mitigate tax liabilities following changes in mortgage interest tax relief for individual property owners.
Despite this trend, the buy-to-let sector has faced challenges, including higher mortgage costs leading some smaller landlords to exit the market. However, the formation of new buy-to-let companies indicates that many investors continue to find opportunities to start or expand portfolios.
For tenants, there is a silver lining: the rapid rise in rents has begun to slow. In February, the average monthly rent on a new let increased by just 1% to £1,355 across Britain, suggesting a potential easing of the rental market pressures experienced in recent years.
Despite ongoing challenges, the property market continues to demonstrate remarkable resilience and adaptability. The sustained growth in buy-to-let company registrations points to a sector that, while evolving, remains a key pillar of the UK economy—signalling enduring investor confidence and a healthy long-term outlook.
