Demand is growing fast

Despite most landlords being hit by changes to mortgage tax relief, appetite for further investment remains, new research has revealed.

According to the new report, the proportion of respondents looking increase their portfolios has risen from 40% to 58% since November 2018. It is also up on the 41% of landlords that were looking to expand their portfolios a year ago.

Over 200 property investors completed the survey, answering questions on their portfolios and how they were financed. Research found that landlords have been increasingly choosing to fix for five years instead of the more traditional three. This is likely due to ongoing uncertainty in the market which Brexit is causing.

There has been a huge shift in investor preferences, with five-year fixed rates now the preferred option for 48% of landlords, up from 38% which is quite dramatic. Three-year fixed rates are now less popular even than 10-year fixes, being chosen by just 5% of respondents.

Most experts expected 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.

Mortgage interest relief for residential buy-to-let properties has been reduced to the base income tax rate, which is 20%. Landlords were previously able to claim tax relief on the top rate of tax of up to 45%. The change means landlords will no longer be able to deduct mortgage interest payments or any other finance-related costs from their turnover before declaring their taxable income.

If you are looking for a new or re-mortgage please do make contact and one of our qualified advisers will be happy to assist.