The Property Boom: Experts explore the 46% surge in UK property businesses

An analysis of Companies House data by private and commercial bank Arbuthnot Latham reveals 46% year-on-year increase in new property businesses in 2024, marking the highest growth in five years. 

Afterrelatively modest rises of 1% in 2022 and 21% in 2023,this acceleration points to a significant change in investor behaviour. Experts point to factors such as changing regulations and long-term wealth planning as key drivers of the trend.

Why are property business registrations surging? 

Arbuthnot Latham experts shared their insights on what is driving this trend.   

A shift in strategy 

According to Tony Eden, Head of Commercial Banking & Real Estate Finance, changing regulations 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 

One factor that could also be behind the rise in registrations is a key regulatory shift, specifically changes to non-domicile rules, which has impacted overseas investors.  Justin Snoxell, Director of Real Estate Finance explains: 

“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 Snoxell 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. Gary Jasper, Senior Wealth Planner, underscores the importance of taking a strategic approach and how it’s likely contributing to the rise of 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 wealth preservation.  “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. 

Manchester and Liverpool competing with London  

While London has historically been the hotspot for property investment, regional cities are catching up fast.  

Manchester and Liverpool saw business registration growth rates exceeding 25%, on par with London in 2024.  Other cities like Birmingham and Leeds are also experiencing substantial increases. 

According to Justin Snoxell, 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 are also fueling 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, more efficient wealth planning, and long-term 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.