New research has revealed that there has been a rise in the number of landlords in the UK who are planning to purchase their next property through a limited company. The research from Foundation Home Loans conducted in September 2019, shows that almost two thirds of landlords intended to purchase future properties through a private company, this is a rise of 55% from the second quarter of 2019.
In general, this was more prevalent among landlords with larger property portfolios. But only slightly higher. Just over 62% of landlords with between one and ten properties said that they intended to buy using a limited company next time, with 65% of those with portfolios of eleven properties or more saying they intended to do the same.
The remainder, those who didn’t state their intention to buy using a limited company were split on their answers. 26% said they would buy as individuals, which is a rise of 2% quarter on quarter. Around 8% stated that it would depend on the circumstances at the time they came to purchase the property in question.
Whilst a small proportion, 6%, said they intended to buy in the name of a partner or spouse.
LIMITED COMPANY BENEFITS
The rise in limited company purchasing is not showing any sign of reducing, in fact, quite the opposite. More and more professional landlords are emerging and realising the benefits of using a limited company to operate through.
There are clear tax and legal benefits to using the limited company method through which to operate a property portfolio and those landlords with larger portfolios will obviously benefit the most from those incentives.
But even smaller landlords are looking at the purchasing model for its obvious benefits and management advantages.
If you’re thinking of purchasing a property through a limited company, come and speak with us today and we’ll be happy to help.