An increasing number of landlords and investors are planning to expand their buy-to-let portfolios in coming months, according to a new study.
The research, conducted by Paragon Mortgages, found that 41 per cent of landlords felt that their prospects over the next quarter of 2016 were ‘very good’.
The results contradict the common belief that George Osborne’s second home Stamp Duty Land Tax (SDLT) surcharge has begun to deter would-be investors since its implementation in April.
John Heron, Director of mortgages at Paragon, said: “Increased stamp duty, as well as reduced levels of income tax relief for landlords… have undoubtedly impacted landlord sentiment.”
Paragon’s study also found that 19 per cent of landlords were planning on expanding their property portfolios in coming months – up 2 per cent from the same survey conducted in the final quarter of 2015.
“In the previous quarter we saw more landlords respond very negatively to the announcements on stamp duty and tax on rental income with more intending to sell rather than buy property,” said Mr Heron.
“This trend is now reversed and purchase intentions have now risen.
“Buy-to-let remains an attractive long-term, demand driven investment, which continues to outperform other asset classes.”