Half Of Landlords Looking To Use Limited Companies
More than half of landlords in the UK say they are looking to use a limited company when buying their next property, a survey reveals.
The research from Precise Mortgages found that more than half of landlords say they will use a limited company to buy a property in the coming year, which underlines the transformation of the BTL market.
While 55% of landlords say they will use a limited company, 24% of landlords say they will buy as an individual.
A limited company is the most popular option among those landlords who have a portfolio of at least 11 properties with 41% of them saying it's still the best option. For landlords with no more than 10 properties, 51% say they will use a limited company for buying their next property.
Fund property purchase using a traditional buy to let mortgage
The research also highlights that 69% of landlords say they will fund their next property purchase using a traditional buy to let mortgage; that is up from 62% who said they would do so at the end of 2018.
The managing director of Precise Mortgages, Alan Cleary, said: "Despite market challenges, professional landlords are managing to grow their portfolios using limited companies and this will continue to be their most preferred purchase route, especially for those with bigger portfolios.
"The growing use of limited companies is more evidence of how the BTL market is changing and shows that brokers and their clients need specialist support when considering switching or buying with a limited company."
Rents fall across the UK
Meanwhile, it has been revealed that rents fell in more than 50% of regions in July.
The findings from GoodLord reveal that five of the eight regions being monitored saw their rents fall.
The largest drop was seen by landlords in the West Midlands, with rents falling from an average of £719 in June to £711.
Rents also fell in the South East and South West, as well as in London and Wales.
Rent increases were seen in the North West
However, rent increases were seen in the North West with a 1.95% rise and the average rent there now stands at £750.
The North East and East Midlands also saw small rises.
GoodLord's Tom Mundy, said: "Average monthly rents fell in most regions and void figures over the last two months show signs that the market is picking up.
"The void figures for June and July are much lower than the 2019 average and indicates perhaps the pent-up demand being released from tenants who may have postponed a decision until the Tenant Fee Ban came in. This is good news for landlords and agents."