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Limited company BTL acts as buffer against inflation, say landlords

  • 27/05/2022
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Limited company BTL acts as buffer against inflation, say landlords
Landlords say that investing through a limited company vehicle has mitigated the risks of inflation.


A survey of 300 landlords conducted by buy-to-let management platform Getground found that 79 per cent of respondents feel that investing either partially or wholly through limited companies lessens the impact of rising inflation compared to if they invested under their own name. 

Just over three quarters, 76 per cent, said limited company investment allowed them to adjust more easily to inflation, while 73 per cent said it made them feel protected against inflation. 

Moubin Faizullah Khan, CEO of Getground, said: “Whether it’s because of its financial, administrative or time-saving benefits, it’s unsurprising that a limited company structure is recognised as a useful defence mechanism against the impact of inflation.  

“In this unprecedentedly high inflation environment, limited companies prompt greater responsible investment too. By moving to a limited company structure, landlords reduce the costs of running their property investments, making them better placed to keep rents at an affordable ‒ while still profitable ‒ level for their tenants.” 

The study follows research from Hamptons earlier this year, which showed a record 47,400 buy-to-let companies were created in the UK in 2021. Getground said this was evident in the make up of its respondents, as 81 per cent held at least a quarter of their property portfolio in limited companies. 

The research also found that landlords with single properties or smaller portfolios were less likely to use limited company structures. Of the landlords questioned, 60 per cent did not hold any properties through limited companies.

The government’s English Private Landlord Survey 2021 found that fewer than half of England’s landlords that operated as companies or organisations owned between one and four properties, with just 11 per cent owning one property while 56 per cent owned five or more.

Khan added: “Our small scale landlords are the lifeblood of a healthy private rental sector and are vital to making sure tenants are secure in their homes while we all endure this cost of living crisis. At a time when some smaller landlords might question the long-term viability of property investing, the industry can and must do more to dispel myths and misunderstandings that surround limited company investing. 

“Gaining a better perspective on the investment structure could be the deciding factor for many of these people when they consider whether or not being a landlord continues to be the right thing for them.” 

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