A buy to let company creation service claims a huge increase in the number of landlords seeking to incorporate.

GetGround says its seen two-and-a-half times the number of incorporations in the year to the end of August than in the previous 12 month period.

It has also recorded an average 11 per cent increase in incorporations completed month-on-month since January this year alone. 

The firm claims that a driver for landlord incorporation is the growing awareness and appeal of limited company investing among a very wide customer base. 

In the 12 months to August 2022, the number of first-time landlords investing through GetGround limited companies doubled. The company also reported year-on-year growth in customers based both in the UK and internationally. 

Chief executive Moubin Faizullah Khan says:  “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 research conducted in early 2022 found that 81 per cent of UK landlords hold at least a quarter of their property portfolio in limited companies. 

Some 79 per cent 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.