The Paragon report also revealed a difference in yields between landlords buying property through a limited company and those who aren’t, with the former generating a more sizable yield on average. The survey results show that an average yield of 6.9% was generated by landlords who hold all their properties in limited company structures.
Rowntree commented: “We see that, compared to the wider market, higher yields are reported by landlords who have larger portfolios that include HMOs and are held in limited company structures. Each of these attributes is a hallmark of what can be considered professional landlords. While I prefer not to label business owners as amateur or professional, the common theme here is that the ‘professionals’ are the ones employing strategies for success.
“We hear lots about how buy-to-let doesn’t stack up for many landlords, but this is evidence that with the correct strategies, even the challenges of the past year or so can be overcame. As an industry there’s an opportunity for us to educate our customers and help them to run successful businesses whilst making a vital contribution to the UK’s housing provision.”
