Landlords focus on acquiring new complex buy to let properties
Many property investors are optimistic about the future of buy-to-let, despite the tax changes that were implemented on April 1st.
Investors remain resilient, with some planning to add to their UK property portfolios by purchasing buy to lets across the country as tenant demand continues to outstrip housing supply.
However, landlords are planning to add more complex property types to their portfolios.
Houses in Multiple Occupation (HMO) are currently attracting an increased level of attention from landlords, with 28% looking to purchase HMOs which is an increase of 18% from 10% six months ago.
“Fewer landlords looking to sell and rather, looking for alternative ways to expand their portfolios, is a positive indicator for the state of the buy to let market. This shows that a significant proportion of investors have not been deterred by the changes to stamp duty and mortgage tax relief that were announced by the Chancellor.” said a spokesperson for Property 118’s landlord insurance provider Discount Insurance.
Although the number of investors looking to add to their portfolio has dipped slightly to 41% from 46% in November 2015, this can be explained by the changes to legislation.
Only 14% of landlords surveyed said they plan to reduce the size of their portfolios which is down from 18% in November 2015.
“Landlords need to remember to protect their new investment properties as soon as possible with the right insurance cover, to avoid any additional costs that may occur in the future,” added the spokesperson.
The research by Mortgages for Business has also seen a rise in limited company applications since the mortgage tax relief announcement.
30% of respondents said they owned a property in a limited company vehicle which has increased from just 22% in 2015.