A survey by Mortgages for Business has found that more than half of landlords are planning to purchase further buy-to-let properties through limited companies. The data comes ahead of the impending rolling back of mortgage interest relief from April 2017 for individual landlords. The poll found that 60% of landlords would be directly affected by the income tax relief changes.
David Whittaker, chief executive of Mortgages for Business, said “The percentages feel about right for the market in general and it’s certainly been a tough 18 months or so for landlords, so it’s encouraging to learn that the majority are getting to grips with changes that will dramatically alter the way they operate. We are still encouraging landlords who haven’t already taken professional advice on the matter to do so ASAP as some may find that the new formula will tip them into the next tax bracket leaving them worse off. The new regime starts in April, so there is not much time left to make strategic decisions and take action.”