Less than 10% of UK owners operate as individuals

This trend is not yet that popular with UK homeowners.

Less than one in 10 (9.7%) UK private owners now actively choose to invest in property as individuals, according to research by property developer Seven Capital.

Currently, two out of five (42%) owners invest through a limited partnership, while 48% plan to invest through a limited partnership or are interested but do not know-how.

“Investing in a limited company has many benefits.”

Andy Foote, Director of Seven Capital, said: “These figures really highlight how much has changed in terms of how property investors choose to buy and operate in the UK property market these days.”

“Of course, investing as an individual will still be the right way to go for some people, as investing is very circumstantial, whatever type of investment you choose. However, we are seeing more and more investors choosing to buy through a limited company or expressing interest in how to do so, which is certainly the case now at Seven Capital.”

“Depending on your goals and your personal situation, buying through a limited partnership offers many benefits, including making your investment more tax efficient, as well as protecting you from some personal liability that can help protect your other assets.”

“What we, as an industry, need to do now is make sure the new purchase to allow all members of the industry to fully understand the rules and ways of investing, allowing investors to make informed and correct decisions for their circumstances. I believe we have a duty to educate in all areas, including the pros and cons of investing through a limited partnership and the process of establishing one.”

“There is hope on the horizon.”

More than half (53%) of homeowners think the UK property market will be stronger 18 months from now, and four in five (80%) think the market will be stronger five years from now.

Most likely, the owners are feeling hopeful about the way the UK government was able to handle the COVID-19 crisis, and how the economic schemes were a resounding success.

HICH LTD continues to work to offer the best property survey service, before, during, and after the pandemic; we have redoubled our efforts to maintain the quality standard that has made us a leading property survey company.

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