In recent times there have been a number of changes that have directly affected landlords in the UK. If you’re a landlord you’ll know all about the tax changes and stamp duty changes, the tenant fees act and the proposed removal of section 21 which will stop landlords from removing tenants after the end of a fixed-term contract.
With the regulatory framework of the buy-to-let market continually changing, landlords are reacting. New research by Precise Mortgages shows that more than half of landlords intend to use a limited company to purchase properties in 2019.
Out of the landlords that were surveyed, 55 per cent stated that they would use a limited company structure to expand their portfolio, compared with 24 per cent who plan on purchasing more houses as an individual. In the last quarter of 2018 the figure stood at 44 per cent followed by 53 per cent in the first quarter of this year showing that the number of landlords looking to use a limited company structure is continuing to rise.
Landlords with large portfolios are most attracted to using a limited company as 71 per cent of landlords with 11 or more properties are intending to use one, while 51 per cent of landlords with 10 or fewer will look to use one.
But if you’re currently a landlord or looking to take your first step into this area it’s important to seek professional tax advice before making a purchase. A specialist tax adviser will be able to help you decide if a limited company structure is the best for you and your personal circumstances.
Your mortgage adviser can then find you the best mortgage deal and take you through the mortgage process from start to finish.
If you’re a landlord looking to expand your portfolio, or just want to talk through your mortgage options, contact one of our advisers today!