Landlords maximise their borrowing options

Landlords not put off from expanding their portfolios

Landlords maximise their borrowing options

Landlords are yet to have been put off expanding their portfolios despite the buy-to-let tax changes, a survey suggests.

The Mortgages for Business Property Investor Survey showed the proportion of respondents seeking to expand their portfolios has grown to 48% from 45% in November 2016 and 41% a year ago, shortly after the introduction of the Stamp Duty surcharge.

When asked how they were adjusting to the changing fiscal environment, 62% of landlords claimed to have consulted a professional tax adviser. Of these, 34% had sought advice specifically because of ongoing changes to income tax relief on finance costs, while 28% said they already had an existing relationship with a tax adviser.

Steve Olejnik, chief operating officer at 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.

“Incorporation is becoming a standard practice and the move towards five-year fixed rates allows landlords to maximise their borrowing options.”

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