More residential landlords considering limited companies
By |Published On: 4th April 2016|

Home » Uncategorised » More residential landlords considering limited companies

More residential landlords considering limited companies

By |Published On: 4th April 2016|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

An interesting survey of almost 1,400 private rental sector landlords has revealed that more numbers are looking into shifting their property investments into limited companies.

The research was conducted by BDRC on behalf of Paragon Mortgages and was conducted to gauge reaction on how increased stamp duty and cuts to tax relief has changed the buy-to-let market.

Moves

Of the respondents, 41% said that they are thinking of moving their portfolio into a limited company as a direct result of the changes. 5% said that they have already founded limited companies.

For landlords with 20 or more properties, 14% are already operating as limited companies, with a huge 63% saying they are considering this move.

43% of landlords questioned said that stamp duty rises will affect their investment plans in the next two years.

More residential landlords considering limited companies

More residential landlords considering limited companies

Demand

Despite rising uncertainty about the impact of tax relief changes and increased stamp duty, tenant demand is still extremely high.

In the final quarter of 2015, demand for rented accommodation was highest in the South West, with 40% of landlords reporting an increase. However in the North West, just 24% of landlords said they experienced more demand in the same period.

Competition

John Heron, director of mortgages at Paragon, noted, ‘recent Government interventions into the buy-to-let market are now beginning to impact landlord sentiment and plans. The fundamental drivers of the market however-tenant demand and yields-remain strong so there are competing dynamics in play.’[1]

‘It is interesting to see that concern about the impact of changes to stamp-duty and tax relief is greatest among larger landlords,’ Heron continued. ‘This concern is likely to grow now that the Government have confirmed that landlords with larger portfolios will have to pay the increased rate of stamp-duty on buy-to-let purchases.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/4/landlords-move-towards-limited-companies

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

Share this article:

Related Posts

Categories:

Looking for suitable
insurance for your
investment?
Check out our four
covers for landlords