Over half of landlords plan to purchase their next property through a limited company, Foundation Home Loans research has found.
Landlords with more than 11 properties in their portfolio are more likely to do so, with seven in 10 intending to buy through a limited company.
Jeff Knight, director of marketing at Foundation Home Loans, said: “Overall the report back from landlords seems pretty positive albeit with obvious concerns about falls in tenant demand and how existing and future regulatory and economic change is going to affect their portfolios.
“What we are clearly seeing is far more portfolio landlords active in the sector, and while there has not been the great exodus that many were predicting, it’s less likely that those with only one or two properties are going to add to them.
“Overall, portfolio landlords are showing serious ambitions for the future, while holding relatively low levels of mortgage debt and therefore risk for lenders. The market value of their portfolios is solid as is their annual rental incomes and, looking at these numbers, it’s obvious to see why they stress they’re in this market for the long-term.”
Just over a quarter of landlords intend to remortgage in the next year, although this rises to one in three for portfolio landlords.
Of all landlords, 29% took out a new remortgage in the last year.
Seven in 10 landlords used an adviser to arrange their most recent mortgage, with 23% dealing direct with a lender.
When asked how they had first come across their mortgage adviser, 44% of landlords said it had been through a recommendation, 13% through an internet search and 9% via membership of a landlord body.