Landlord appetite is strong despite recent ongoing restrictions to income tax relief on finance costs, according to Mortgages for Business. The broker
Landlord appetite is strong despite recent ongoing restrictions to income tax relief on finance costs, according to Mortgages for Business.
The broker’s latest Property Investor Survey shows the proportion of respondents seeking to expand their portfolios has grown to 48 per cent, from 45 per cent in November 2016.
The figure a year ago was 41 per cent.
Landlords have also been increasingly choosing to fix for five years instead of three.
In May 2016 around 18 per cent of landlords chose three-year fixes and 21 per cent chose five-year deals.
Now five-year fixed rates are now the preferred option for 42 per cent, up from 33 per cent in November and twice the proportion from May 2016.
Three-year fixed rates, meanwhile, are now less popular even than ten-year fixes, being chosen by just 5 per cent of respondents – less than a third of their popularity a year ago.
Mortgages for Business chief operating officer Steve Olejnik says: “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.”
A total of 186 property investors completed the survey.