According to research from Paragon, which surveyed around 500 landlords, this was the average across all age groups, but younger landlords were more likely to make a limited company purchase.
The report explained that every survey respondent aged 25-34 intends to use limited companies for future acquisitions, compared to 82% of landlords in the 35-44 age group and 73% of those aged 45-54.
Around half of landlords – 54% and 48% – in the 55-64 and 65-75 age groups respectively plan to use SPVs for BTL property purchases in the future.
The research also revealed that a third of landlords – 32% – intend to transfer properties held in their personal name into a limited company structure in the future.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “Our research shows how owning property via a limited company structure has become increasingly popular over the past decade, driven by changes in taxation.
The new-build energy advantage
Sponsored by Halifax Intermediaries
“Nearly two-thirds of landlords intend to make future purchases through limited companies, so we expect the overall proportion of property held within a company structure to increase steadily in the coming years, particularly when you include those landlords who will incorporate existing property from personal name.”
She added: “It’s encouraging to see that they will continue to adapt in this way, particularly the next generation of landlords, who seem to have realised the potential benefits of this ownership structure early in their lettings business careers.”
