Nearly two thirds of landlords anticipate using specialist purchase vehicles (SPVs) for future BTL purchases, according to new research from Paragon.
A survey of 515 landlords found that 63% expect to use SPVs which was an average across all age groups.
Every survey respondent aged 25-34 said they intend to use limited companies for future acquisitions, compared to 82% of landlords in the 35-44 age group and almost three quarters (73%) of those aged 45-54.
Approximately half of landlords — 54% and 48% — in the 55-64 and 65-75 age groups plan to use SPVs for future BTL property purchases.
The survey also revealed that a third of landlords (32%) intend to transfer properties from being held in their personal name into a limited company structure in the future.
“Our research shows how owning property via a limited company structure has become increasingly popular over the past decade, driven by changes in taxation,” said Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured above).
“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.”
