Mr Kingswood said: “I spoke with one landlord who said he was going to re-invest the stamp-duty savings towards energy efficiency works in his properties.
There will still be a good chunk of landlords beleaguered by years of tax hikes and punishing rules who won’t change their mind about selling up.”
The number of landlords turning to incorporation in an attempt to navigate tax changes has steadily increased since 2008. Last week’s overhaul, coupled with rising interest rates, could accelerate the trend.
In the first eight months of this year 35,519 buy-to-let incorporations were set up, compared with 34,711 in the same period in 2021. Investors in limited companies can still deduct mortgage costs from their income, an option not available to individuals.
David Fell, of Hamptons, said: “The drive towards incorporation is probably likely to gather pace from landlords as their cheap fixed-rate deals expire and they find themselves facing higher rates, a cost which they cannot fully deduct from their tax bill.”
