While the shock headline of the Budget for landlords is there 2% tax increase on property income, the reality is that Chancellor Rachel Reeves’ measure only applies to those who hold investment properties in their own name – not limited companies.
Emma Cox, managing director of real estate at specialist lender Shawbrook, comments:“While the government has announced a 2% tax increase in property income, most professional landlords operating via a limited company will be breathing a sigh of relief that rumoured, punitive changes were not announced.
“Though economic uncertainty and market volatility have posed challenges over the past 12 months, landlords have proven themselves to be agile and able to withstand pressures. While house prices continue to fluctuate, the promise of accelerated housebuilding and the lack of additional taxes will encourage professional landlords to seek further opportunities and add to their portfolios over the coming months.
“Continuing to diversify property types, shifting towards assets such as semi-commercial property and HMOs, will continue to be an effective strategy for those looking to maximise yields and ensure their businesses are robust against any sudden market changes.”
In recent weeks the lettings agency Hamptons has reported that a record 33,598 buy-to-let companies were set up in the first half of 2025. Even after April’s stamp duty increase, incorporations rose sharply in May and June.
And last month Hamptons reported that so-called Millennials (those born between 1981 and 1996) are now leading the charge in buy to let investment, increasingly through limited companies rather than individual ownership.
For the first time, according to Hamptons’ analysis of Companies House data, Millennials now account for half of all new shareholders in buy-to-let companies across England and Wales. The agency says the rise of younger investors has helped sustain landlord purchases, even as tax hikes and tighter regulations have made the market more challenging.
Data from Connells – the corporate agency giant which owns Hamptons and many other brands – shows that the share of homes bought by a landlord across England and Wales remained unchanged from the same time last year, despite an increase to the second home stamp duty surcharge.
This article is taken from Landlord Today