According to the data, this is a fairly recent and rapid-developing trend among landlords — 49% of respondents first invested via a limited company within the last 12 months, while 42% have done this for the first time in the last 1-3 years.
The adoption of limited companies by landlords comes as a result of external market events, as 93% of landlords surveyed who incorporated their property investments said they made this choice to ensure their properties would not be less profitable while mortgage rates remain high.
Meanwhile, 57% incorporated to benefit from limited personal liability, as well as enable co-investment among multiple people.
The results of this poll resonate with GetGround’s previous survey conducted in May 2022, which found that 78% of landlords believe investing through limited companies would help them better mitigate the impact of inflation than investing in their personal name.
Moubin Faizullah Khan, CEO at GetGround, said: “Industry data is creating an exciting picture of limited company adoption across the landlord community, but until now, it’s not been entirely clear how many individual landlords are using limited companies and how extensively used they are among landlords’ portfolios.
“Our final poll for 2022 shows that awareness and adoption of incorporations is fast growing, and importantly, for the right reasons.
“Whether it’s affordability, protection against risk, financial viability or acting responsibly and transparently, incorporating your investments pays off.
“It is reasonable to expect that limited company adoption will continue to accelerate as we move into 2023.”