Adapting to change: The evolving landscape of property business registrations

Why are property business registrations surging?

To better understand what is driving this trend, we spoke to our experts, including Tony Eden, Head of Commercial Banking & Real Estate Finance, Justin Snoxell, Director of Real Estate Finance, and Gary Jasper, Senior Wealth Planner, who shared their perspectives on the key factors influencing this growth.

A shift in strategy

According to Tony Eden, changing regulations, tax efficiency, and long-term wealth planning are driving the shift in how landlords and investors structure their property ownership.

“More landlords are setting up limited companies to manage their buy-to-let portfolios. With evolving regulations and a growing focus on asset protection, company ownership is becoming the preferred route,” he explains.

Regulatory changes pushing the trend

Justin Snoxell agrees and points to one key regulatory shift that may be accelerating registrations: changes to the non-domicile rules.

“In the past, many overseas investors held UK property through offshore entities, meaning these holdings weren't recorded on UK company registries.  With government reforms requiring these companies to register in the UK, we're seeing a notable increase in new property-related business registrations,” Justin explains.

A growing focus on wealth preservation

With increasing awareness of wealth preservation, investors are placing greater emphasis on structuring their assets wisely.  Wealth planning is becoming a key factor in property investment decisions, and Gary Jasper underscores the importance of taking a strategic approach and how it’s likely contributing to the rise on limited company structures.

“While buy-to-let companies don’t qualify for Business Property Relief, landlords still have options for long-term planning.  Gifting shares in a property company over time, establishing trusts, and implementing strategic wealth management, for example, can help safeguard a property legacy,” Gary explains.

More people are recognising that acting early provides greater flexibility and better tax efficiencies.  “As awareness of wealth protection strategies grows, more landlords may be setting up property businesses sooner rather than later to maximise the benefits.  This shift in mindset may be a key factor behind the recent rise in property business registrations,” he adds.

Where are business registrations growing the fastest?

While London has historically been the hotspot for property investment, regional cities are catching up fast.  In 2024, Manchester and Liverpool saw business registration growth rates exceeding 25%, on par with London.  Other cities like Birmingham and Leeds are also experiencing substantial increases.

What could be driving this regional surge?

According to Justin, strong rental demand and better affordability compared to London are key factors.

“Manchester continues to be a prime destination for owner-occupiers and investors looking for strong yields and long-term growth potential.  Many landlords are setting up limited companies to target these regional hubs, where property values are more accessible and rental demand remains high,” he explains.

Liverpool's booming development and significant regeneration projects in Leeds and Bristol also fuelling interest from domestic and international buyers.

“It’s not just about acquiring property; investors are increasingly structuring their holdings through corporate entities to optimise management, tax efficiency, and succession planning,” Justin adds.

With these trends in mind, it’s clear that the surge in property business registrations isn’t limited to London – it’s part of a nationwide shift as landlords and investors adapt to evolving market conditions.

Will the trend continue?

Yes, but with some caveats, says Justin.  While the increase in property business registrations is expected to continue, several factors will shape the extent of this growth.

“The property sector remains a strong and attractive market, and we’ve seen sustained use of limited company structures,” Justin explains.  “However, some of the recent surge in registrations may be artificially inflated by regulatory changes, particularly those affecting overseas investors.”

Government reforms, such as the new non-domicile rules previously mentioned, have prompted investors to shift offshore property holdings into UK-registered companies, boosting registration figures. 

Interest in setting up property portfolios within limited companies is expected to continue, but the pace of growth will depend on market conditions and government policy. 

• Interest rates remain high, which may dampen property transactions and slow new business formations.

• Government planning and housebuilding targets could create opportunities for investors, but the delivery of these promises remains uncertain.

   

“The government has set ambitious targets to revise planning processes and increase housebuilding,” Justin notes.  “If these targets are met, they could provide more opportunities for landlords and investors to expand their portfolios.”

Despite these uncertainties, he believes limited company structures will remain a preferred strategy for landlords and investors. “We're seeing more people move into limited companies as part of structured financial planning – helping to manage assets efficiently and support succession strategies in a compliant manner.”

Gary agrees, saying that better estate planning could be a driver of future growth in limited company structures, particularly for those considering inheritance tax.  

“As more people consider the implications of inheritance tax and succession planning, many are exploring limited companies as a structured approach to managing property assets within the framework of existing tax regulations.”

However, he notes that many still avoid discussions about inheritance planning.

“Our Financial Wellbeing Report found that the majority of people shy away from conversations about passing down wealth, which can cause stress and confusion.  Only 14% of respondents regularly discuss money and inheritance with their children or grandchildren,” Gary explains. 

“While awareness is growing, there is still a long way to go.  As more investors look for structured ways to protect their assets in the long term, the trend toward limited company ownership is likely to continue,” he concluded.

About our UK Business Index Tool

Arbuthnot Latham has developed an analytical in-house tool to comprehensively examine Companies House data over the last two decades. This gives us unique insight into business registrations from a geographical, sectoral and demographic point of view, and enables a granular view of activity using city, postcode, gender and age metrics.

Methodology for this report

To create this report we used a proprietary Arbuthnot Latham tool to analyse Companies House data and compare the average population in each city to the number of businesses registered there in 2023 and 2024. The final Business Index Score ranking was calculated by multiplying businesses per capita by 1,000.