Landlords in the UK still want to invest in buy to let property with a new survey showing that 44% are looking to expand their portfolios before the middle of 2018.
But many have not yet fully embraced recent tax and regulatory changes with the property investor survey from Mortgages for Business also revealing that 54% have not taken professional advice about income tax changes.
When asked what types of property they intended to purchase as part of their expansion strategy, 75% said that vanilla buy to let would form part of the mix. HMOs, which are known to produce the highest yields, often close to 10%, were also cited as a preferred option.
However, there was an increase, from 9% to 15%, in the number of landlords who said that they intended to reduce the size of their portfolios in the next six months as a direct result of the tax changes.
The fact that the remaining 41% said they would do nothing demonstrates that an element of wait and see still exists among landlords.
‘The results show that many landlords are more optimistic about the future of property investment than some commentators would have you believe. Of course, there will be some who will choose to leave the sector but this will create opportunities for those who are in it for the long term,’ said Steve Olejnik, chief operating officer at Mortgages for Business.
The survey also found that limited companies as borrowing vehicles were the popular choice for those expanding their portfolios with 58 % opting for this route and a further 20% advising they would be purchasing both personally and via a corporate structure.