Approximately 140,000 landlords retired in 2022, making up 73% of all landlord sales, according to a report by Hamptons. This trend is expected to continue as 96,000 landlords reach the age of 65 each year, in addition to the almost one million landlords who are already over the age of 65. Many of these landlords are likely to have acquired their properties in the buy to let boom that started in the late 1990s.
In addition, tax concerns are driving an increase in incorporations. Approximately 47,000 new companies for buy to let were set up last year, compared to 9,343 just 10 years ago. This follows tax changes in recent years which restrict the tax relief available to Higher Rate Tax payers on mortgage interest and increasing interest rates. Each case must be considered on a case by case basis however, as incorporating can result in significant Stamp Duty Land Tax, Capital Gains Tax, finance and legal costs, so specific advice must be sought in advance.