Over three in five landlords (63%) are anticipating using specialist purchase vehicles (SPVs) for future buy-to-let (BTL) property purchases, new research by Paragon Bank research has indicated.

A survey of over 500 landlords conducted by the bank indicated that an increase in the proportion of BTL property held in limited company structures over the past decade is likely to continue, spearheaded by younger and newer landlords.

Every survey respondent aged between 25 and 34 is intending to use limited companies for future acquisitions, compared to 82% of landlords in the 35-44 age group, and 73% of those aged 45-54.

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

Paragon’s study also revealed that a third of landlords (32%) are intending to transfer properties held in a personal name into a limited company structure in the future.

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

“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 added: “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.”

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