Government forcing landlords to house non-paying tenants for lengthy periods11:18 AM, 15th September 2020
About 5 days ago 39
Increasing numbers of buy to let landlords in the UK are now considering moving their property investments into limited company vehicles.
This move is a likely response to landlords facing more property tax and experiencing cuts to mortgage tax relief.
41% of 1,400 landlords who took part in the survey indicated that they are considering moving their portfolio into a limited company following George Osborne’s decision to limit tax relief.
5% of landlords have already established limited companies, the survey by Paragon Mortgages has revealed.
14% of larger landlords with 20 or more properties are already operating as limited companies while 63% are considering it.
“Despite recent changes to legislation coming in to affect and influencing particular decisions made by landlords, tenant demands and yields remain strong. The buy to let market is healthy and the changes are unlikely to be a major disadvantage to the average landlord,” said a spokesperson for Property 118’s landlord insurance provider Discount Insurance.
“There is greater concern among larger landlords in regards to stamp duty and tax relief,” added the spokesperson.
43% of landlords have agreed that the stamp duty increase will affect their buy to let purchasing plans over the forthcoming years, whereas 63% for larger landlords with 20 or more properties.
40% of landlords reported demand to be rising in the fourth quarter of 2015 in the South West, where demand was the strongest.
However, in the North East, just 24% of landlords reported increasing demand.
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