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Home > News > Growing interest in SPVs among landlords | Plaza Estates London

Special Purpose Vehicles becoming more popular with landlords amid tax changes

By Maurice Shasha  //  Thu 19th April 2018
More landlords are choosing to hold their properties within a Special Purpose Vehicle (SPV) to minimise the impact of buy-to-let tax changes, while choosing to invest more in HMO properties.
Growing interest in Special Purpose Vehicles (SPV) for landlords
More landlords are choosing to hold their properties within a Special Purpose Vehicle as a means of mitigating the impact of buy-to-let tax changes.

According to lender Roma Finance, more landlords are switching to a Special Purpose Vehicle with a view to minimise the impact of tax changes, which includes the reduction of mortgage interest relief and stricter lending criteria for portfolio landlords.

A Special Purpose Vehicle (SPV) is a type of limited company which enables landlords with a portfolio of buy-to-let properties to be as tax-efficient as possible.

In addition to a growing preference for SPVs, some landlords are also showing a preference for HMO properties as a form of investment and semi-commercial property.

Managing Director at Roma Finance, Scott Marshall, said: "The market in this segment remains upbeat with our share of lending on buy-to-let still strong for a wide range of property acquisition and refurbishment."

"Landlords and property investors have put in place new company structures and strategies to protect their portfolios and maximise future income and growth", Marshall added.

Landlords and investors, including those investing in London's prime areas, are proving resourceful in finding ways to minimise the impact of tax changes on their investment yields.

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