More limited company lettings

As it stands 18% of properties let out in the first half of 2018 were owned by a company rather than an individual – a record high.

This represents an increase of 4% compared to the first half of 2017 and 8% higher than the first half of 2016.

The number of rented homes owned by company landlords continues to rise. Nearly one in five homes let so far this year were owned by a company landlord, almost double the proportion in 2015, before the tapering of mortgage interest tax relief changes were announced.

Companies are generally taxed more favourably, so in many cases landlords can make cash savings by operating through a company rather than as an individual.

Rental growth slowed in June, falling below 1% for the first time in seven months as the shortage in stock begins to level out. The lull in landlord purchasing activity following the stamp duty surcharge for second homes appears to have bottomed out as investors find new ways to make their returns.

One in four (25%) of homes let in Yorkshire in 2018 were owned by a company landlord, followed by the North West (20%) and London (19%).

In the first half of 2017 just 16% of lets in Yorkshire were through a limited a company, indicating the significant rise of limited company landlords in the county.

There is now a much larger choice of limited company mortgages on offer than ever before with virtually one to suit the majority of needs. Interest rates and set up charges have reduced significantly in the last 12 months as providers see the potential in increased business.

If you are looking for a new or re-mortgage please do make contact and one of our fully qualified advisers will be pleased to assist.