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The continued rise in prominence of portfolio landlords and limited companies
The dynamics of the buy-to-let sector continue to change in line with economic influences, market forces, not to mention landlord and tenant demands.
It’s no secret that we’ve seen a sustained shift to a market where the profile and presence of portfolio landlords are dominating.
And an even greater emphasis is being placed on specialist lenders to deliver the criteria, products and policy to meet their sometimes complex needs.
Within this, the remortgage market has long provided a vital revenue stream for intermediaries and these landlord types are likely to generate a growing number of opportunities across the buy-to-let sector.
This was illustrated in the latest Q3 2023 landlord research from Foundation Home Loans – in conjunction with BVA BDRC – which revealed that portfolio’ landlords will be ‘significantly’ more likely to remortgage in the next 12 months compared to ‘consumer’ landlords, with larger portfolio landlords, much more likely to do so within a limited company structure.
When asked how they intended to remortgage, less than half of landlord respondents (49%) said they would do so as an individual. This represents a fall of 3% compared to Q2 figures. In contrast, the number of landlords intending to remortgage within a limited company has increased by 6% compared to Q2 data, now sitting at just over a quarter (26%).
From a purely a purchasing perspective, those landlords with larger portfolios remain significantly more likely to purchase in a limited company structure (82% of 6+ property landlords versus 18% of those with 1 – 5 properties).
This data represents a noteworthy rise and demonstrates the continued shift towards the use of limited company vehicles which reflects the increased prominence of portfolio and professional landlords, who better understand and value the advantages of holding their properties within such corporate structures.
It also places an even greater emphasis on an adviser to recognise how individual lenders, such as Foundation Home Loans, can supply the kind of solutions to meet the changing needs of their portfolio landlords. So, why not speak to us today about our portfolio landlord proposition.
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