Landlords flocking to limited company structures for buy to let

63% of landlords plan to buy their next buy to let through a limited company, up from 55% in Q2.

In our quarterly landlord survey via BDRC, we discovered that landlords planning to buy their next investment property through a limited company structure has jumped significantly by 8% in just three months.

Jeff Knight our Marketing Director comments, 'Landlords with large and small portfolios are equally convinced by the limited company model. Mortgage rates and underwriting have become increasingly favourable via limited companies and SPVs, narrowing the cost margin that previously left landlords choosing to buy in a spouse's name or as an individual. Our borrower behaviour data supports the trend: our top-selling BTL product, the Fee Assisted 3.39% has attracted more applications as a limited company than Individual applicant.’

 

The quarterly report also shows that landlords waiting to decide how to next structure their next property purchase 'depending on 'circumstances at the time' have dropped from 13% to 8%.

 

Jeff continues: 'This is an indicator that the limited company model has now gained a foothold; property investors are more reassured that the limited company structure is a feasible way for them to press on with growth plans confidently, whatever next year brings."

 

The study also revealed that in Q3, rental yields nationally recovered only marginally from their Q2 9-year-low, now up to 5.6%, and that HMOs continue to generate the highest rental yield at 6.5%.

 

If you have a limited company case to discuss, contact us today.

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