Most landlords expect to be hit by upcoming tax relief changes and stricter mortgage affordability checks, according to research by Mortgages for Business.
The firm’s latest Property Investor Survey says 60 per cent of landlords predict they will be affected by the tax relief changes.
However, 29 per cent of landlords felt they would be unaffected.
Mortgages for Business says these landlords are mainly a mix of basic rate income tax payers and landlords operating through limited companies that are subject to corporation tax.
Mortgages for Business chief executive David Whittaker says: “The percentages feel about right for the market in general and it’s certainly been a tough 18 months or so for landlords, so it’s encouraging to learn that the majority are getting to grips with changes that will dramatically alter the way they operate.
But 11 per cent of landlords said that they still did not know if the changes would affect them directly and one respondent was totally unaware.
The survey also found that 9 per cent of respondents did not know how the revised buy-to-let affordability calculations would affect how much they could borrow.
Meanwhile 6 per cent were completely unaware of the new guidelines, despite wide media coverage on the topic.
When asked whether future purchases would be made personally or using a limited company, 54 per cent of landlords opted for the just incorporated route.
A further 16 per cent said they would use both.
Five year fixed rate mortgages were found to be the most popular product type overall.
Around 34 per cent of respondents said they preferred this term.
A total of 283 landlords responded to the survey in the November period of 2016.