One in five homes let in the UK this year is owned by a company landlord, marking a record high for a rental index.
The proportion of homes let by a company landlord reached 20% in the first quarter of this year across Britain, the highest proportion since records started in 2010, according to lettings network Countrywide.
Recent tax changes for landlords may be a reason behind the increase, Countrywide suggested.
Changes to income tax relief on mortgage interest payments that started in April are being phased in over a four-year period until 2020. Â Landlords have already been hit by a stamp duty hike in April last year.
Countrywide suggested some landlords may be finding it more tax-efficient to own their buy-to-let portfolios through a company than hold them as a personal asset.
Landlords letting homes in London are particularly likely to own their own property using a company name, with 27% of properties in London being owned by a company, the research found.
Johnny Morris, research director at Countrywide, said: Â “The number of rented homes owned through a company is on the up.
“The incoming tapering of mortgage tax relief is likely driving the increase. Â Companies are generally taxed more favourably, particularly with recent changes by government to tax relief, so in many cases landlords can make cash savings by operating through a company rather than as an individual.”
The index is based on around 90,000 homes let and managed by Countrywide each year.
According to the company’s figures, 4% of homes let in Scotland are owned by a company landlord.