Limited company incorporations surge 2.5 times in 12 months



Buy-to-let firm GetGround has seen a 2.5x increase in the monthly number of limited company incorporations it facilitated in the 12 months to the end of August 2022.

GetGround recorded an average 11% increase in incorporations completed month-on-month since January 2022 alone.

Moubin Faizullah Khan, chief executive of GetGround, said: “As individuals and businesses, many of us are being confronted with the fallout of the Covid pandemic, geopolitical unrest and now rising inflation, rates and cost of living.

“Landlords are no different, with this universally-felt financial uncertainty putting pressure on the viability of their investments.

“Just as we’re seeing an uptick in interest from investors looking to purchase energy-efficient, new build properties, they are also turning to limited company structures to optimise their finances.

“From tax efficiencies to personal liability, there are many good reasons why limited company investing makes good business sense, but ultimately it comes down to efficiency. Efficiency is key to investing sustainably, responsibly and profitably.

“In tougher economic times, the ability for landlords to optimise their buy-to-let portfolios for the long-term is proving crucial and, as our strong company creation numbers month-on-month prove, GetGround is well positioned to help them achieve that.”

GetGround’s experience of growing adoption of limited company investing in the property investment market tallies with the wider market climate.

Its research conducted in early 2022 found that 81% of UK landlords hold at least a quarter of their property portfolio in limited companies.

79% of those who invest partially or entirely through limited companies believe that doing so helps them better mitigate the impact of rising inflation than if they were to invest in property in their personal names.

This data correlates with recent industry evidence from Hamptons that showed that around half of UK investment property purchases in 2021 were completed through limited companies – the highest annual total on record.

 

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