The use of limited company vehicles by landlords has been growing noticeably over the last year with reports showing that new purchases are increasingly being put into this process.
However, Thistle Finance noted it had witnessed a 30% increase in the number of UK landlords incorporating their portfolios during the second quarter of the year compared to the first.
And this has now been taken a step further with smaller landlords moving in to this sector as well, with the average portfolio size being incorporated decreasing by around 40% during Q2.
The packager added that with a growing number of lenders offering limited company buy-to-let mortgages and with rates falling as a result of the increased competition, the incorporation route was becoming more attractive.
Thistle Finance managing director Mark Dyason said: “Smaller-scale portfolio landlords who have been toughing it out in recent years are increasingly waking up to the benefits of incorporating their portfolios.
“The number of landlords doing this has been rising gradually for some time but in the second quarter of the year we saw the trend really begin to accelerate.
“Landlords that are genuinely committed to buy-to-let are starting to optimise their portfolios, not just by remortgaging onto better rates, where’s there’s a huge amount of activity, but by moving into limited company ownership.”