Just one in 10 landlords willingly operate as individuals
Less than one in 10 (9.7%) UK private landlords now actively choose to invest in property as an individual, research from property developer SevenCapital has found.
As it stands two in five (42%) landlords invest through a limited company, while 48% plan to invest through a limited company or are interested but don’t know how.
Andy Foote, director at SevenCapital, said: “These figures really highlight just how much has changed in terms of how property investors choose to buy and operate in the UK property market these days.
“Of course, investing as an individual will remain the right path to go down for some people, as investing is very circumstantial – whatever type of investment you choose. However more and more we’re seeing investors choosing to buy through a limited company or expressing an interest in how to go about it, which is certainly the case now at SevenCapital.
“Depending on your objectives and your personal situation, buying through a limited company offers many benefits, including making your investment more tax efficient, as well as shielding you from some personal liability which can help to protect your other assets.
“What we as a sector need to do now is make sure that the new buy to let rules and ways to invest are fully understood by everyone within the sector, enabling investors to make informed and correct decisions for their circumstances. I think we have a duty to educate on all areas, including the pros and cons of investing through a limited company and the process for setting one up.”
More than half (53%) of landlords think the UK property market will be stronger in 18 months’ time, and four in five (80%) believe the market will be stronger in five years’ time.