Younger and newer landlords will spearhead the continued increase in the proportion of buy-to-let (BTL) property held in limited company structures seen over the last decade, Paragon reveals.

A survey of over 500 landlords revealed that 63% expect to make future property purchases through specialist purchase vehicles (SPVs).

This is an average across all age groups, with Paragon’s analysis highlighting how the propensity for limited company purchase is highest amongst the youngest cohort and decreases with age.

Every survey respondent aged 25 to 34 intends to use limited companies for future acquisitions, compared to eight in 10 (82%) landlords in the 35 to 44 age group and almost three quarters (73%) of those aged 45 to 54.

Approximately half of landlords (54% and 48%) in the 55 to 64 and 65 to 75 age groups plan to use SPVs for BTL property purchases in future.

The survey also revealed that a third of landlords (32%) intend to transfer properties held in personal name into a limited company structure in the future.

Paragon Bank managing director of mortgages Louisa Sedgwick says: “Our research shows how owning property via a limited company structure has become increasingly popular over the past decade, driven by changes in taxation.”

“Nearly two thirds of landlords intend to make future purchases through limited companies, so we expect the overall proportion of property held within a company structure to increase steadily in the coming years, particularly when you include those landlords who will incorporate existing property from personal name.”

She adds: “It’s encouraging to see that they will continue to adapt in this way, particularly the next generation of landlords who seem to have realised the potential benefits of this ownership structure early in their lettings business careers.”