Almost two-thirds of landlords plan to expand their property portfolio by buying through a limited company
Property investors looking to add to their portfolio are more likely to purchase through a limited company, according to a quarterly survey of landlords by Foundation Home Loans.
Nearly two-thirds (63%) of buy-to-let landlords responding to the specialist lender’s poll said they were planning to buy their next rental property in a limited company over the next 12 months.
This is an 8% increase on the results of the previous survey in Q2, with the report also finding that purchases through limited companies are increasingly becoming the preferred option for landlords with a broad range of portfolios.
Historically, investors with buy-to-let portfolios spanning at least 11 properties are the most likely cohort to purchase through a limited company, but the research reveals that landlords with smaller portfolios are also considering using them.
65% of landlords with 11+ property portfolios said their strategy was to use a limited company, whilst 62% of small portfolio investors of up to 10 properties said the same.
In addition, almost a third (31%) of landlords said they are planning to remortgage at least one of their properties in the next year.
Jeff Knight, Marketing Director of Foundation Home Loans, commented: “The rise in limited company usage by landlords shows no sign of tailing off, particularly as we have a more professional landlord community who recognise the benefits of using such a vehicle.”
Earlier in the week, the Residential Landlords Association (RLA) warned that buy-to-let investors have to comply with over 150 regulations and legislations, but that this has not resulted in better action against criminal landlords.