Limited Company increasing in popularity

Jessica Nangle

August 19, 2019

More than half of landlords plan to use limited companies to buy properties in the year ahead according to research by Precise Mortgages.

The study found that 55% of landlords will use limited companies for purchases which is more than double those who intend to buy as an individual (24%).

Limited companies are most popular among landlords with a portfolio of 11 or more properties, with 71% of landlords using them for purchases.

Those with portfolios of 10 properties or fewer also prefer the limited company route, with 51% claiming they will do so.

The research also suggests that 69% of landlords intend to fund their next portfolio purchase with a traditional BTL mortgage.

Alan Cleary, managing director of Precise Mortgages, said: “Despite the challenges in the market, professional landlords have still managed to grow their portfolios over the past year with the use of limited companies, and it will continue to be the most preferred purchase route particularly for those with larger portfolios.

“The increased use of limited company status is further evidence of how the buy-to-let market is changing and demonstrates how brokers and their clients need expert specialist support when buying as a limited company or considering switching.”

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