Landlords turn to accountants for property help

Landlords turn to accountants for property help

More than half of landlords are involving accountants when making key property decisions, new research from Kent Reliance for Intermediaries has revealed.

Around three-quarters of full-time landlords are using an accountant, though more than a quarter said they had only recently started doing so.

The lender suggested this was a clear sign of the growing professionalism of the landlord sector, noting its previous research last year which found that one in five landlords had recently set up a limited company in order to offset changes to the tax treatment of buy-to-let purchases.

Kent Reliance highlighted that landlords were increasingly interested in diversifying away from ‘vanilla’ buy-to-let investments, with brokers reporting being approached by landlords looking to get into HMOs (56 per cent), commercial property (14 per cent) and mixed use properties (9 per cent).

Adrian Moloney (pictured), sales director at parent firm OneSavings Bank, suggested that as portfolio and full-time landlords increase their market share, it’s likely that the use of professionals like accountants will increase further.

Moloney added: “More landlords are making the move into a limited company structure to help offset the effects of recent tax changes. This requires more detailed accounts as well as professional tax advice, the latter, in particular is where the accountant comes in.  

“While brokers play a pivotal role in advising their client, they should not be giving tax advice. Should a client want to move into a limited company, a broker should advise them to seek the help of an accountant as a first step.”

SOURCE: mortgagesolutions

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