Almost half of buy-to-let landlords are looking to expand their property portfolios despite recent tax changes in the industry and tougher BTL lending conditions, according to a new poll.
Despite the existing phasing out of mortgage tax relief and the introduction last year of the 3% stamp duty surcharge for those acquiring an additional home, including a buy-to-let property, 48% of landlords are currently looking to add to their portfolios, up from 45% in November and 41% a year ago, a Mortgages for Business’ Property Investor Survey has revealed.
The study was carried out over a two-week period last month, having been sent to Mortgages for Business’ clients and advertised across social media and landlord forums. A total of 186 buy-to-let investors completed the survey, answering questions on their portfolios.
Steve Olejnik, chief operating officer of Mortgages for Business, said: “Although we expect buy-to-let lending to reduce somewhat this year, these results demonstrate that landlords are a resilient bunch, capable of adapting their investment strategies to successfully accommodate the new fiscal and regulatory landscape.”
The research found that 62% of landlords have been adapting to the changing environment by consulting tax advisers to deal with recent tax amendments, while 42% of investors are currently opting for the longer fix-term mortgages.
“Incorporation is becoming a standard practice and the move towards five year fixed rates allows landlords to maximise their borrowing options,” he added.