Transactions made by private limited companies made up 43% of the total number of buy-to-let applications during January.
This is the main finding of a report conducted by broker Mortgages for Business, with this figure up from the 38% recorded in December.
‘Landlords have woken up to the fact that transacting via a corporate vehicle is a feasible option and in many cases, the most prudent route going forward,’ noted David Whittaker, Managing Director of Mortgages for Business. ‘I wouldn’t be surprised if the percentage continues to rise as landlords, especially the higher tax rate-paying ones, prepare for the forthcoming changes to relief on finance costs.’
BTL transactions made by LTD co’s rise in January
‘The increase is due to landlords trying to get as many purchases as they can completed before the stamp duty surcharge comes into effect on 1 April, after which I would expect transactions to return to more considered levels,’ he added.
The total number of applications for buy-to-let mortgages, made by both individuals and limited companies, increased by 27% in January, in comparison to December 2015. Undoubtedly, the upcoming changes in Stamp Duty surcharges and the abolition of tax-relief for landlords have been key factors in this growth.