New research from Mortgages for Business revealed that almost half (48%) of buy-to-let landlords are still looking to expand their portfolios despite recent tax changes in the industry and tougher lending conditions.
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, has not been enough to deter investors in the property market with figures rising from 45% in November and 41% a year ago.
The report also found that when it comes to buy-to-let mortgages, there has been a significant shift with 42% of landlords now opting for a five-year fix, up from 33% in November and twice the level recorded in May 2016.
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.”
“Incorporation is becoming a standard practice and the move towards five year fixed rates allows landlords to maximise their borrowing options,” he added.