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Should You Buy Your Rental Property Using a Limited Company?

In this two-minute read, we have a quick look at what you need to consider when becoming a landlord.

Before becoming a landlord, you need to consider how you want to buy your rental property. There’s lots of tricky tax stuff to consider and changes to tax relief over the last few years mean that becoming a landlord might not be as profitable as you first think.

So, what should you do? Should you buy a rental property in your personal name or via a limited company?

Setting up a limited company

Since 2016, more private companies than ever before have been set up to hold buy-to-let properties (primarily because of tax changes) and it’s relatively easy to do. Whether you’re starting a company on your own or with others, it’s a matter of choosing a name, deciding who does what, having a company address, and registering online with Companies House.  

Keeping the accounts and records for a limited company can be a lot more complicated than personal tax, so it’s always advisable to hire an accountant. In addition, proper accounts are a legal requirement when running a limited company, so by hiring a professional you can have peace of mind that things will be done the right way.

Taxing stuff

Tax. Ugh. A word that makes everyone feel slightly sick. And when you’re a landlord, it’s an area you need to get your head round.

Over the last few years, the government has brought in several tax changes that impact private landlords with property in their own names and their level of tax relief. In simple terms, this means less profit and more tax.

For example, in England, rental profit is subject to income tax. Previously, if you had an £800 monthly mortgage bill and earned £1,000 in rent, you would only pay tax on the £200 profit. However, since April 2020 tax changes have meant that mortgage costs can no longer be treated as an expense, meaning after-tax profit has considerably reduced.

Limited companies now hold more tax advantages for landlords. For example, a limited company can still treat mortgage costs as an expense along with other related costs of managing a rental property. In addition, limited companies are subject to corporation tax which is currently set at 19% (although this is set to increase), instead of income tax, which changes the more that you earn. 

Other tax areas to investigate if thinking about setting up a limited company include:

  • No capital gains tax
  • Inheritance tax issues (if you plan to pass your property on)

Always speak to an accountant or financial advisor when it comes to tax matters.

If you’re thinking about buying a rental property, please speak to us at

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Seven Super Ideas to Make the Most of a Spare Room

We look at what you can do with a spare room to ensure you’re making the most out of it in this two-minute read.

Now’s the time to give your spare room some serious thought about how to make the best use of this extra space in your home.

Especially after the past 18 months we’ve all experienced, which have changed the way many people use it.

Below are seven things you can do to create a room that suits your lifestyle and situation.

  1. Home office – Yes, we know you may already be doing this but have you created a workspace that works for you?
  2. Guest room – Now we can have guests overnight again, is it time for you to give yours some TLC with new furniture, a different layout, and some additional little touches like a lovely lamp and bedside cabinet? A decent sofa bed here will give you even more options.
  3. The best of both worlds – If you’re going to sell or rent your property, this next tip is a gem, if space allows. To capture the imaginations of a broader set of people looking to move, create a bedroom with a small desk.
  4. Cinema room – Creating a magical movie room is easier than you think. All you need is a projector, screen, surround sound, and comfortable chairs. Oh, and popcorn, to make film night something you look forward to.
  5. Gym – When it’s chucking it down outside, it can be hard to get motivated to do some exercise. But having the gym a few steps down the hallway can help you keep fit.
  6. Kids stuff – If you have children and feel their toys are waging a covert invasion of every part of your family home, the spare room can be your saviour. Create a playroom where ALL their stuff goes (and hopefully stays).
  7. Dress to impress – If none of the above ideas float your boat, how about creating a dressing room? Yes, it’s a bit Hollywood but if you have the space and like the idea, then why not? It’s your home, after all.

There are plenty of other ways to use a spare room. These include a man cave or damsel’s den, a reading room, or an artist’s studio. If you’re lucky enough to have the blank canvas a spare room provides, make the most of it.

We’ve been advising people to make the most of their homes since 2014 and we’re here to answer any questions you may have.

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What Will the Homes of 2050 Look Like?

Star Trek fans, look away now.

What Will the Homes of 2050 Look Like?

“It’s a home, Jim, but not as we know it.” The original phrase (we’ve replaced life with a home) didn’t even feature in the popular sci-fi show, apparently, but we’re digressing.

If you’re interested in what life will be like in the homes of 2050, keep reading.

A report commissioned by the respected industry organisation the National House Building Council (NHBC) sees experts look into the future and make predictions around how homes will change.

The report, fittingly called Futurology: The New Home in 2050, makes for fascinating reading.

Below are ten forecasts from across the 40-page report.

  1. Multigenerational living will become increasingly popular. As property prices increase and people live longer, more families will come together to live under one roof.
  2. ‘Green roofs’ featuring grass areas will become the norm to encourage wildlife activity.
  3. Electric car charging points will be a feature of every new home and development.
  4. Smart boxes will replace letterboxes so that deliveries can be safely and securely left.
  5. The homes of 2050 could monitor our health and remind us to go for a walk, take medication, or even let us know if the bathwater is too hot.
  6. With demands on homes to be multifunctional, expect to see many more properties with movable walls.
  7. Micro living, for people living on their own, will increase. These smaller homes will be part of developments that offer communal areas, shared services, and cycle storage.
  8. New homes in 2050 will be highly energy-efficient – featuring several ways of capturing, storing, and distributing energy.
  9. Due to climate change, homes will need to be more responsive to weather events. In addition, better cooling systems will ensure homes don’t overheat in the potentially warmer summers.
  10. Light switches and electrical sockets could become obsolete as movement detectors and voice controls become omnipresent.

If you’re thinking of moving a little earlier than 2050, maybe even this year, feel free to contact us with any questions you have.

We’ll use our expertise and experience to help you on the journey to a new home in the future.

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BIG Breaking News – For the Rayleigh & Hockley Property Market

A 2-minute read.

The Chancellor Rishi Sunak has announced sweeping changes this afternoon around Stamp Duty which is excellent news for anyone thinking of buying a home in Rayleigh & Hockley.

Stamp Duty is a tax applied when you buy a property and the announcement that there will be a payment holiday starting immediately means homebuyers will save thousands of pounds.

What’s Changing?

The Government has raised the stamp duty threshold to £500,000 for all buyers until March 31st, 2021.

That means property purchases below £500,000 will not need to pay ANY stamp duty.

On average that will save homebuyers at least £4500 according to the Chancellor, also meaning 9 out of 10 people will pay no Stamp Duty whatsoever while the holiday lasts.

The move has been welcomed by home buyers and across the property industry. It is being seen as a step on the path to getting Rayleigh & Hockley and the UK’s economy firing on all cylinders again.

What it Means to You

You’re most likely thinking ‘how much could I save when buying a new property now?’

Well, the more you pay for a property during the Stamp Duty Holiday – up to the new £500,000 threshold – the more you can save.

For example, according to the BBC, if you bought a house for £275,000 before today’s announcement, the Stamp Duty you’d have to pay would be £3,750.

What does it mean for the Rayleigh & Hockley property market?

We’ve already seen a lot of interest in the Rayleigh & Hockley property market since lockdown was relaxed.

This move by the Government will keep the positive momentum going and help the broader economy.

This is because when people move, they often spend thousands of pounds doing up their new home to suit their lifestyle and tastes.

The change also means now is a great time to put your property on the market as we’re expecting a surge of buyers looking to make their move while they can save a large chunk of cash.

What we’re doing to help buyers and sellers

We’re primed and ready to take your calls and answer any questions you have around the new Stamp Duty changes.

So, if you are thinking of selling in 2020 now is the perfect time thanks to this news.

We’re always here to help so if there’s something you want to know either comment below or call us now on 01268 500988.

Thanks for reading.

The team at Nest in Essex.

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Real Estate Roundup!

May new home sales gain 2.2% from April

Sales of new single-family houses in May 2015 were at a seasonally adjusted annual rate of 546,000, which is up 2.2% from April, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. — From Housing Wire

3 ways to tame student loan debt and afford a mortgage

It’s no secret that student loans can make buying a home a challenge. But what exactly is the problem, and how can buyers overcome it? The problem is that student loans can be included in the buyer’s debt-to-income ratio, or DTI. — From Bankrate

Read more