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Nearly a fifth of Countrywide buy to let properties are now let through landlord companies, with numbers reaching record highs.
The Hamptons International Monthly Lettings Index revealed that the proportion of properties rented through landlord companies has risen to 18 per cent during the first half of 2018. His is up from 14 per cent this time last year.
This rise may bring benefits for tenants as the data reveals that company landlords offer a high proportion of properties with cheaper rents.
A third of homes let by landlord companies cost under £500 per month. This is in comparison to the 19 per cent of homes let by individuals. The highest proportion of homes let by landlord companies were found in Yorkshire and the Humber, at 25 per cent. London had 20 per cent of such homes.
It was also revealed that the average cost of a new let in Britain reached £956 per month in June 2018, up 0.7 per cent annually. However, this is lower than the annual growth of 1.3 per cent recorded in May.
Rents rose the most in Wales up by 4.1 per cent year on year to reach £671 per month. London rents also declined across the capital on average, with outer London prices down by 0.5 per cent to £1,489 per month.
Analyst at Hamptons International, Aneisha Beveridge, 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. Rental growth slowed in June, falling below 1 per cent 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.’