New research from Precise Mortgages shows that more than half of landlords plan to use limited companies to buy properties in the year ahead underlining the ongoing transformation of the buy to let market.
Its study found 55% of landlords will use limited companies for purchases, which is more than double the 24% of landlords who intend to buy as an individual.
The latest research confirms the continuing rapid growth in the number of landlords using limited companies to expand their portfolio – in Q4 of 2018 around 44% of landlords planned to use limited companies for purchases and in Q1 of 2019 the number was 53%.
Limited companies are most popular among landlords with a portfolio of 11 or more properties with 71% using them for purchases, but it’s still the dominant option for those with portfolios of 10 or fewer with 51% saying they will go down the limited company route to buy their next property compared with only 27% buying as individuals.
Nearly seven in ten (69%) landlords intend to fund their next portfolio purchase with a traditional BTL mortgage compared with just over six in ten (62%) in Q4 2018, the research shows.