The number of company landlords had hit a record high after more than a decade in the doldrums.
New data for the first six months of this year shows 641,500 private rented homes – one in eight tenancies – are controlled by companies.
This is a jump from 537,000 homes or 10% of all private rented properties at the end of 2018.
The numbers were put together by property consultants Hamptons International, which blames an ongoing government campaign of slashing tax breaks and increasing regulation in the private rented sector for the rise of corporate landlords.
Aneisha Beveridge, head of research at Hamptons International, said: “Around one in eight rental properties are now owned by private companies, an indication that the sector continues to professionalise. Increasing taxation for private landlords combined with the growth of the build to rent sector has meant that more companies are letting homes than at any time since our records began.
Rents hit a three-year peak
“London, where landlords tend to have higher levels of debt and often the most to gain from corporate ownership, has the largest proportion of homes let by a company. However, it’s not always more profitable to put a buy-to-let into a company as other associated costs come into play.”
The firm also claims that buy to let rents have hit a peak last seen in April 2016.
Rents have risen by 3.1% in the past 12 months to an average of £986 a month.
The highest growth was in the South West, where rents leapt by 4.5% and London, where they were up 4.3%. However, rents in the capital showed poor returns a year ago after three months of drops.
“Strong rents in the South drove rental growth in Great Britain in June. Low stock levels, particularly in the South, continue to put pressure on rents. Rents rose in six out of eight regions in Great Britain, with the East and Wales recording small falls,” said Beveridge.
Company landlords – Number of homes and market share
|No of homes||% of market|
Source: Hamptons International