Recent Paragon Bank research has revealed significant shifts in the buy-to-let mortgage sector, as reported by over 300 surveyed mortgage brokers. The findings indicate that 49% of intermediaries anticipate a rise in buy-to-let mortgages for portfolio landlords utilizing limited companies over the next year. Additionally, 45% foresee an increase in business from non-portfolio limited companies during the same period.

Examining the current landscape, the data indicates that 29% of current mortgage cases are dedicated to portfolio landlords operating through limited companies, with a parallel 15% catering to non-portfolio landlords. Looking ahead, 34% and 32% of brokers, respectively, anticipate maintaining current business volumes with both portfolio and non-portfolio landlords within limited company structures.

Contrary to these expectations, only a modest 11% of brokers predict introducing more business to both portfolio and non-portfolio landlords borrowing in their personal names in the coming year.

Louisa Sedgwick, commercial director of mortgages at Paragon Bank, interprets these findings, stating, “Intermediaries are right to expect increased limited company business this year.” She attributes this shift to landlords responding strategically to governmental changes in the tax treatment of buy-to-let property ownership. Sedgwick emphasizes the importance of professional advice, cautioning that incorporation may not be universally advantageous, and its benefits depend on individual circumstances.

These findings align with Paragon’s PRS Trends report, indicating that 64% of landlords planning property investments in the next year intend to do so through a limited company. Among landlords with six or more properties, this proportion rises to 82%, emphasizing a discernible trend towards limited company structures for property investment. The practical implications of these insights reflect the evolving landscape of property investment strategies.