A survey conducted by Mortgages for Business has revealed that 44 per cent of the UK landlords are keen on expanding their residential portfolio in 2018. This is despite most of the landlords understanding that they will be affected by the changes to income tax liability.
According to an announcement from Mortgages for Business, majority (75 per cent) of the landlords, who participated in the latest “Property Investor Survey”, said that they were keen on investing in vanilla buy-to-let houses as part of their portfolio expansion.
The survey results show that many landlords are more optimistic about the future of property investment despite predictions of slowdown in rental growth this year because of several reasons. Traditionally, landlords have held on to more than one property because of consistent rental growth in key housing markets of the UK. The survey findings reiterate their faith in the UK property market despite the risks involved in portfolio expansion.
It was obvious that the landlords depended on financial institutions to acquire new homes. Limited companies as borrowing vehicles were the popular choice for those expanding their portfolios with 58 per cent opting for this route and a further 20 per cent advising they would be purchasing both personally and via a corporate structure.
Steve Olejnik, COO 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.”