Over two thirds (68%) of brokersexpect towrite more limited company buy-to-let business this year than during 2017, with a reduction in traditional buy-to-let lending, Simply Mortgages has found.
Over two thirds (68%) of brokersexpect towrite more limited company buy-to-let business this year than during 2017, with a reduction in traditional buy-to-let lending, Simply Mortgages has found.
Martin Reynolds, chief executive of SimplyBiz Mortgages, said: “Information received directly from the firms we serve is absolutely invaluable in terms of letting us see trends in the direction of the market, and giving us insight into the reasons why we might see changes from not only brokers but also consumers.
“Research such as this helps us understand market behaviour as it happens, which is hugely useful when it comes to creating and maintaining a proposition that supports our Member Firms where they need it most.
“Changes in the 2015 Autumn Statement clearly made the market less attractive to most portfolio landlords in terms of stamp duty and certain aspects of taxation, and we expected to see a rise in the number of limited company buy-to-let cases as a result.”
Reynolds added: “However, the fact that the majority of brokers expect to see this rise continue throughout2018 gives us an indication that increasing numbers of landlord clients are selecting limited company buy-to-let.
“I would, however, add the cautionary note that the taxation issues surrounding this type of business are complex, and it can’t immediately be assumed that limited company buy-to-let will be the most tax efficient route for all clients.
“As the majority of brokers writing the business are not tax specialists, I would advise them to guide their clients to get a qualified opinion to ascertain the best long-term option for an individual client’s circumstances and financial plan.”
