Two thirds of landlords plan to purchase buy to lets through limited companies.
Research found that the decade-long increase in BTL property held in limited company structures is set to continue.
Some 63% of 500 landlords surveyed expect to make future purchases through Specialist Purchase Vehicles (SPVs).
Paragon’s analysis suggests the propensity for limited company purchase is highest amongst younger landlords.
Every survey respondent aged 25-l to 34 intends to use limited companies; 82% of landlords in the 35-44 age group feel the same.
This drops to 73% of those aged 45-54; the 54% and 48% in the 55-64 and 65-75 age groups.
The survey also reveals that a third of landlords (32%) intend to transfer properties held in personal name into a limited company structure in future.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, says: “The next generation of landlords … seem to have realised the potential benefits of this ownership structure early in their lettings business careers.”
Paragon says the removal of Section 24, announced in 2015, triggered the growth in company structures.
This article is taken from Landlord Today