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TODAY'S OTHER NEWS

Fresh surge in limited company buy-to-lets

Limited company buy-to-let transactions jumped again in January to make up 43% of all new cases, lender figures show.

This has helped to maintain momentum in the buy-to-let market, despite the looming tax crackdown by Chancellor George Osborne.

Investing in buy-to-let through a limited company will become relatively more attractive after higher rate tax relief for private investors is gradually phased out from April 2017.

New figures from Mortgages For Business show that applications made by limited companies accounted for 43% of all new buy-to-let cases in January.

This is an increase on 38% in December.

The figures also showed that total buy-to-let application numbers rose a healthy 27% in January as the market remained buoyant.

David Whittaker, managing director of Mortgages for Business, said landlords have woken up to the fact that transacting via a corporate vehicle is a feasible option.

“I wouldn’t be surprised if the percentage continues to rise as landlords, especially the higher tax rate-paying ones, prepare for the forthcoming changes to relief on finance costs.”

The total number of buy-to-let mortgage applications by both individuals and limited companies rose 27% in January compared to December 2015.

Mr Whittaker said: “The increase is due to landlords trying to get as many purchases as they can completed before the stamp duty surcharge comes into effect on 1 April, after which I would expect transactions to return to more considered levels.”

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