Just 47 per cent of landlords use a tax adviser, shows research carried out by BVA BDRC on behalf of Foundation Home Loans.
Of those who do, 40 per cent said that they use an adviser “at least” once a year, while 7 per cent used one less than this.
Nearly half – 42 per cent – of those above went to an adviser recommended either by a friend, colleague or landlords, and 3 per cent said they had gone by the recommendation provided by their mortgage broker.
On top of this, 40 per cent of those asked believe their mortgage costs will go up during 2020, and 13 per cent see them going down. Those with 20 or more properties on their books were more likely to answer with the former.
The research asked nearly 800 landlords for their opinions, and also yielded insight on growth prospects: last year, 26 per cent of landlords said that they would reduce the number of properties in their portfolio. This time the survey said 22 per cent – and 14 per cent plan to increase the number they hold – up from 13 per cent last time the question was asked.
Of those 13 per cent, 55 per cent plan on doing so through a limited company, and 30 per cent as an individual.
Foundation Home Loans director of marketing Jeff Knight says: “Having specialist tax advice should, in our opinion, be a non-negotiable for landlords before they make any decision about what type of mortgage they need, and how they are going to own and finance their properties.
“Advisory firms clearly have a role to play in this and, it is surprising to see so few landlords saying they chose their tax adviser on the basis of their adviser’s recommendation. An introductory arrangement can work for all concerned – advice firm, tax adviser and client – and should help provide clarity on the tax position and, subsequently, the mortgage advice.
“It is also interesting to hear that large numbers of landlords believe their mortgage costs are destined to rise in 2020, especially when we have such a highly-competitive mortgage market. This clearly presents a marketing opportunity for advisers to target those landlords who may be purchasing or refinancing this year, because we might suggest that their clients could be pleasantly surprised by the products and rates on offer to them.”
