Some 40% of landlords are considering moving their portfolios into corporate structures according to new research just undertaken. The survey of 1500 landlord’s shows a further 5% have already established limited companies following the Chancellors decision to reduce tax relief from April 2017. As for landlords with 20 or more properties 15% are already operating as limited companies and 65% are looking to change in the near future. As well as a reduction in tax relief the Chancellor has imposed a 3% stamp duty surcharge on buy-to-let purchases which took effect on 1st April 2016. Accountants around the country are reporting increased activity in the buy-to-let area as landlords enquire into the benefits of incorporating. The tax changes don’t seem to of dented the landlord’s confidence as over 65% said they will not be changing their long term business plans. There is still a great demand for rental properties and it is expected to rise on an annual basis as first time buyers find it difficult to get on the property ladder. Buy-to-let mortgages are plentiful with very attractive deals available both in fixed and trackers. Mortgage suppliers have increased the number of limited company plans available and look set to continue in this vein as incorporation becomes more popular. Need help? If you need assistance choosing your new buy-to-let mortgage please do contact one of our fully qualified advisers who will be happy to help.
