Some 55% of landlords planning to add to their portfolio over the next 12 months will use a limited company to buy property, new research shows.
A fresh study from specialist lender Precise Mortgages reveals that, in comparison, just under a quarter - 24% - of landlords intended to purchase property as an individual.
This figure has increased from the first quarter of the year, when 53% of landlords planned to use limited companies for property acquisitions, while just 44% planned to do so in the final quarter of last year.
The research also found that 71% of landlords with a portfolio of 11 or more properties have used limited companies for property purchases, while just over half - 51% - of landlords with a portfolio of 10 or fewer properties said they would acquire property using limited companies, compared with just 27% purchasing as individuals.
Some 69% of landlords intend to fund their next portfolio purchase with a traditional buy-to-let mortgage compared with just over six in ten - 62% - in Q4 2018, the research shows.
Alan Cleary, managing director at Precise Mortgages, commented: “Despite the challenges in the market, professional landlords have still managed to grow their portfolios over the past year with the use of limited companies, and it will continue to be the most preferred purchase route particularly for those with larger portfolios.
“The increased use of limited company status is further evidence of how the buy-to-let market is changing and demonstrates how brokers and their clients need expert specialist support when buying as a limited company or considering switching.”