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The proportion of rental properties owned by investment firms - not individuals - has reached record levels.

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  • Almost one-fifth of rental homes are now owned by investment companies rather than individual landlords, new research has shown. 

    A record high of 18% of buy-to-lets were owned by firms in the first-half of the year, according to Hamptons International. 

    The figures were 4% higher than last year and 8% more than in 2016, with Yorkshire and Humber (25%), the North West (20%) and London (19%), the regions where companies have taken the biggest hold.

    The average cost of a new let in Britain rose to £956 by last month, but rental growth slowed to 0.7%, down from 1.3% in May.

    “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.” Aneisha Beveridge of Hamptons International said. 

    “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. 

    “Rental growth slowed in June, falling below 1% for the first time in seven months as the shortage in stock begins to level out.  

    “The lull in landlord purchasing activity following the stamp duty surcharge for second homes appears to have bottomed out as investors find new ways to make their returns.” 

    Proportion of homes let by a company landlord 

    Year (Jan - Jun only)

     

    2010

    14%

    2011

    12%

    2012

    11%

    2013

    12%

    2014

    11%

    2015

    10%

    2016

    10%

    2017

    14%

    2018

    18%

    Source: Hamptons International

    Proportion of homes let by a company landlord by region 2018 

    Region

     

    Yorkshire and the Humber

    25%

    North West

    20%

    London

    19%

    East

    18%

    South East

    18%

    Wales

    17%

    Scotland

    17%

    North East

    17%

    South West

    16%

    East Midlands

    16%

    West Midlands

    15%

    Great Britain

    18%

    Source: Hamptons International

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