The proportion of landlords who plan to purchase their next buy to let property through a limited company has hit the highest level for three years, a new survey shows. 

A substantial uplift from 50 per cent in the first quarter of this year to 62 per cent in the second quarter has been identified by Paragon Bank. 

Just under half of landlords who own between one and five properties expect their next purchase to be through a limited company, rising to over three quarters amongst those with portfolios consisting of six or more buy to let homes.  

The survey of over 700 landlords, undertaken by BVA BDRC for Paragon, found in the next 12 months, some 14 per cent of landlords plan to purchase buy-to-let properties. 

Of those who intend to expand their portfolios, two thirds said that they plan to finance their next property investment through a buy-to-let mortgage, following an increase of four percentage points since the previous quarter. There has also been an increase in the proportion of landlords who plan to fund purchases by releasing equity from existing properties, up from 17 per cent in Q1 2022 to 28 per cent in Q2 2022.