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News: Close to half of BTL landlords looking to expand portfolios

Fri, 09 Feb 18

Almost half of buy-to-let landlords are looking to expand their property portfolios despite recent tax changes in the industry, 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, 44% of landlords are currently looking to add to their portfolios, the latest Mortgages for Business’ Property Investor Survey has revealed.

Despite the range of changes having an adverse impact on the buy-to-let market, 44% of landlords surveyed said that they plan to expand their portfolios during the first half of this year.

Steve Olejnik, chief operating officer of Mortgages for Business, said: “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.”

In terms of what properties landlords are interested in three quarters - 75% - said vanilla buy-to-let would form part of the mix, with HMOs also being a preferred option.

Limited companies as borrowing vehicles were the popular choice for those expanding their portfolios with 58% opting for this route, while a further 20% advised they would be purchasing both personally and via a corporate structure.

But just over half - 54% - of landlords who responded to the survey said that they had not sought any professional advice relating to how the tax changes might affect them, which Olejnik said “is a worrying statistic”.

“This means we must continue to raise the issue with landlords every time they approach us for finance,” he added. 



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