- 58% of landlords are currently using an accountant, with a further 10% considering doing so
- Sign of the growing professionalisation of sector
- Recent tax changes prompt more to seek advice
Over half (58%) of landlords are currently using accountants to help make key property decisions – a clear sign of the growing professionalisation of the sector. The findings come from new research from Kent Reliance, part of specialist mortgage provider and retail savings group OneSavings Bank plc, in partnership with Charterhouse Research.
Accountants are playing an increasingly vital role for landlords with a further 10% of landlords considering using an accountant in the future.
Kent Reliance’s research found that full-time landlords were more likely to have always used an accountant. While three-quarters of full-time landlords currently use an accountant, one in four (29%) said they had just started using one.
Recent changes to the tax treatment of landlords may be one reason behind the increasing reliance on accountants for advice. Indeed, according to previous research from Kent Reliance and BDRC Commercial (now BVA BDRC) in January 2018, one in five (19%) landlords had recently set up a limited company in order to offset changes to the tax treatment of buy to let. Operating through a limited company requires a higher level of detail in the accounts and therefore will require the help of an accountant.
Landlords affected by recent tax changes are also more likely to be looking to diversify away from ‘vanilla’ buy to let into often higher yielding options such as HMOs, student accommodation or commercial/semi-commercial properties.
Adrian Moloney, Sales Director at OneSavings Bank comments: “This is clear evidence of the growing professionalisation of the sector. As portfolio and full-time landlords take more of the market share, we could see the use of professionals like accountants increase further. This is good news for the sector as landlords have the benefit of access to advice ahead of key property decisions, particularly on the tax implications.
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, and therefore often the help of an accountant. However, using an accountant no matter the size or structure of your portfolio can be very beneficial. Not only will this ensure you are fully informed before making any new financial decisions, but also in helping make any new loan process quicker and more efficient.”