Latest research claims that virtually two-thirds of landlords purchasing properties over the next year will be using a limited company.

The research from an intermediary-only specialist lender states that landlords with smaller portfolios preferred to purchase properties by using a limited company.

Landlords with eleven or more properties were considered the norm for using limited companies, but increasingly landlords with smaller portfolios have decided to take advantage of the 'kinder' tax regulations.

Around 62% of landlords who own up to 10 properties will be purchasing properties using a limited company, and 65% of landlords with larger portfolios will be doing the same over the next year.

73% of landlords said that they preferred to use a mortgage adviser and only 19% went direct to a lender; 1% said they used a comparison site.

Over the next 12 months 31% will be remortgaging at the least one of their properties with 65% using a mortgage advisor, 23% going direct to a lender, 10% were unsure of the method they would use, and 3% would fund it from elsewhere.

A director of the specialist mortgage intermediary lender, said: “The rise in limited company usage by landlords shows no sign of tailing off, particularly as we have a more professional landlord community who recognise the benefits of using such a vehicle.

“It’s therefore perhaps no surprise to see a growing number of landlords signalling their intention to make their next purchase through a limited company.

“There has also been a notable uptick in limited company remortgaging and whether these are larger portfolio landlords or not, it’s quite apparent where the market has moved to and the growing need for limited company expertise."