Finance firm reports 30% rise in company landlords
There has been a big rise in the number of company landlords incorporating their portfolios between the first and second quarters of this year, a finance firm says.
Thistle Finance, a specialist packager, says it has seen a 30% rise in the number of landlords in the UK doing so.
They say the average finance portfolio size that is being incorporated has fallen by 40% in the second quarter, which seems to suggest that smaller landlords are now beginning to appreciate the increased tax benefits of owning their portfolio through a limited company.
While many amateur and accidental landlords started to leave the rental sector after the 3% stamp duty surcharge was introduced, those that have remained are increasingly looking to incorporate.
Also, there's been a rise in the number of mortgage lenders offering buy to let mortgages only to limited companies and rates are falling because of growing competition.
‘Waking up to the benefits of incorporating’
The managing director of Thistle Finance, Mark Dyason, said: “In recent years, small-scale portfolio landlords have toughed it out but they are increasingly waking up to the benefits of incorporating.
“The number of landlords opting to do this has been gradually rising for some time, but in the second quarter of 2018 we have seen the trend begin to accelerate.”
He added that those landlords who are committed to the buy to let sector are beginning to optimise their portfolios and not just by remortgaging for a better rate.
Mr Dyason says there's increasing activity of landlords looking to move into limited company ownership and they are following in the steps of larger professional landlords.
Women are increasingly attracted to property investment
Meanwhile, a survey has revealed that women are becoming increasingly attracted to property investment.
The survey questioned 1,000 people in the UK and 40% of them said, if money was not an issue, then property investment would be their first choice.
Around 19% of those who responded said they already had an investment property, with 19% of men saying they had one and 20% of women saying so.
Also, 23% of men said they had considered property investment, but hadn't taken the plunge with 23% of women agreeing.
A director of the firm that undertook the research, SevenCapital, Andy Foote, said: “It's intriguing to see the agenda splits when it comes to investments. Some common myths have been blown wide open by our research.”