{"id":19005,"date":"2018-07-18T09:45:46","date_gmt":"2018-07-18T08:45:46","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=19005"},"modified":"2018-07-18T09:45:46","modified_gmt":"2018-07-18T08:45:46","slug":"leap-in-limited-company-landlords-could-be-good-news-for-generation-rent","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-us\/news\/leap-in-limited-company-landlords-could-be-good-news-for-generation-rent\/","title":{"rendered":"Leap in limited company landlords could be good news for Generation Rent"},"content":{"rendered":"

The number of buy-to-let landlords choosing to operate through a limited company is firmly on the rise, and they could offer cheaper rents, too.<\/strong><\/p>\n

Almost a fifth (18%) of all privately rented properties are now owned through a limited company landlord<\/a>, new research by Hamptons International analysing lettings data from the first half of 2018 has revealed. This is a 4% rise compared to the first six months of 2017, and an 8% increase on 2016’s figures, proving the trend is more popular now than ever.<\/p>\n

On a regional<\/a> basis, the most “company landlords” were see in Yorkshire and the Humber, accounting for 25% of all homes let privately, while the north-west<\/a> wasn’t far behind with 20% of all rental properties owned by company landlords, followed by London with 19%.<\/p>\n

The good news for tenants<\/h4>\n

Rents being charged by such landlords were also cheaper<\/a> overall, the statistics revealed, with 35% of all properties let by a company landlord bringing in less than \u00a3500 per month, compared to 19% for individual landlords. More than half (54%) of company landlord properties were being charged at \u00a3500-\u00a31,000, with just 7% in the \u00a31,000-\u00a31,500 bracket compared to 11% for individuals.<\/p>\n

One reason for this could be that some landlords stand to make tax savings<\/a> by operating through a limited company structure as opposed to an individual, which has become a more prominent issue since Section 24 mortgage interest relief changes began being phased in earlier this year<\/a>. It could be that these landlords are then able to pass these savings on to their tenants, rather than upping the rents to pay for any additional tax outgoings as a result of the changes.<\/p>\n

Aneisha Beveridge, analyst at Hamptons International, said: “The number of rented homes owned by company landlords continues to rise.<\/p>\n

“Nearly one in five homes let so far this year were owned by a company landlord, almost double the proportion in 2015, before the tapering of mortgage interest tax relief changes were announced.”<\/p><\/blockquote>\n

“Companies are generally taxed more favourably, so in many cases landlords can make cash savings<\/a> by operating through a company rather than as an individual.”<\/p>\n

Rental growth across the UK<\/h4>\n

In terms of rental growth across the private rented sector as a whole, the biggest upsurge was see in Wales<\/a> with a 4.1% average rental increase between June 2017 and June 2018, from \u00a3644 a month to \u00a3671. This was followed by the east of England with 2.3% growth, and the Midlands<\/a> with a 2.2% rise.<\/p>\n

The only area to see its rental values fall was London<\/a>, where monthly prices dropped by 0.5% in outer London from \u00a31,496 to \u00a31,489, and by 0.3% in inner London from \u00a32,603 to \u00a32,596.<\/p>\n","protected":false},"excerpt":{"rendered":"

The number of buy-to-let landlords choosing to operate through a limited company is firmly on the rise, and they could offer cheaper rents, too. Almost a fifth (18%) of all privately rented properties are now owned through a limited company landlord, new research by Hamptons International analysing lettings data from the first half of 2018… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":19031,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,4,6],"tags":[15,341],"class_list":["post-19005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-investment","category-uk-housing-market","tag-landlords","tag-newsletter"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/19005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=19005"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/19005\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/19031"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=19005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=19005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=19005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}