The number of limited companies set up to hold buy-to-let property investments has surpassed 400,000, making it the most dominant small company type registered. Latest figures have revealed another hike in the number of buy-to-let landlords setting up a limited company through which to operate their rental portfolio. And whilst this used to be primarily a measure taken by large portfolio landlords, increasingly, smaller landlords are also choosing to operate in this way to take advantage of certain borrowing and tax advantages.

According to Hamptons, the latest Companies House figures from February show more registered buy-to-let companies than any other type of business – with almost four times as many landlords setting up companies than fast food takeaways or hairdressers. This represents a surge of around 332% over the past nine years, with the total hitting 401,744 last month. Unsurprisingly, London has the greatest share of limited company buy-to-lets, and then next on the list is the South East, with 50,453 companies representing a 13% share.