The share of incorporated property held within portfolios by limited company landlords has more than doubled since the start of 2020, according to Paragon Bank.
Research carried out by Pegasus Insight, commissioned by the lender, found that 12% of landlords use a mixture of individual and limited company ownership.
Of this segment, an average of 76% of the portfolio - or 13.1 properties - were incorporated at the end of the third quarter of the year.
This is up from an average of 36% of portfolios - or 6.3 properties - incorporated in the first quarter of 2020.
Individual ownership remains the most prevalent structure, with 79% of landlords holding portfolios in their name.
The remaining 9% have incorporated their entire portfolios.
Limited company ownership was revealed as more prevalent amongst landlords with larger portfolios, with only 7% of landlords with between one and three BTL properties incorporating their entire portfolio.
This increases to 28% for those with four or more.
Paragon Bank managing director for mortgages Louisa Sedgwick (pictured above) commented: “Despite this, we see that the majority of properties, 79%, are owned solely in individual names, hinting at the potential opportunities for limited company lending business.
“Brokers can add another string to their bow by generally upping their knowledge of what’s involved and, more specifically, the lenders who are good at managing this type of application and their criteria.”
