An increasing number of landlords are planning to offload part of their buy-to-let portfolios within months as a result of changes to the way in which they are taxed.
Despite the changes in the sector though, just over half of landlords haven’t sought any professional advice on they might be affected.
Research by broker Mortgages for Business found 54% of landlords had not taken advice on how they could be hit by the scaling back of mortgage interest relief introduced in April 2017.
Of those who were aware, 15% said they planned to reduce their portfolio in the next six months as a result of the tax changes. This is up from 9% when the poll was last conducted in May 2017.
However, a significant 44% of landlords said they plan to expand their portfolios in the next six months.
Many were turning to limited companies as borrowing vehicles as that would let them retain the mortgage interest relief. Just over half, 58%, said they were using this route and a further 20% advised they would be purchasing both personally and via a corporate structure.
Steve Olejnik, chief operating officer at 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.
“What’s really happening is the market is getting far more specialised. Portfolio landlords are coming to the fore, as fewer people are getting into buy-to-let as an alternative pension strategy. The role of the broker will grow as lenders increasingly rely on them to help landlords understand the changing environment and prepare the paperwork that is now required when applying for a mortgage.”