A large number of buy-to-let landlords are looking to increase their portfolio during the coming years, according to new research from the Bank of Ireland.
The Bank’s UK Buy-to-Let Market Index has revealed that 46% of investors with landlord insurance on two or more properties expect to add to their collection soon. This is despite the host of changes introduced by former Chancellor George Osborne, aimed at creating a level playing field between investors and homeowners.
Despite the additional 3% stamp duty surcharge, the abolishment of the wear and tear allowance and scheduled changes to mortgage interest tax relief, 52% of investors questioned would like to become a buy-to-let landlord.
This indicates there is a resilience in the buy-to-let market, against the backdrop of economic uncertainty being created by Brexit. 54% of landlords said they do not think their buy-to-let investments will not be detrimentally impacted by the referendum decision. 19% actually believe the decision will benefit their investment.
Mark Howell, director of marketing and customer management at Bank of Ireland UK mortgages, said: ‘The 10th wave of our index shows that attitudes towards the buy-to-let market remain incredibly positive. Despite a number of events which were expected to have a negative impact on the sector, homeowners and landlords continue to see buy-to-let as a solid long-term investment.’
Further findings from the research indicate that 55% of landlords wish to increase their portfolio in the near future. 38% of those surveyed said that they are likely to alter their mortgage payments to help them cope with the changes to mortgage interest payments.
Concluding, Mr Howell said: ‘It’s really encouraging to see such confidence in the market and I am particularly pleased to see that the Mortgage Affordability Index has risen to record highs. Landlords do, however, need to be aware of the impact that George Osborne’s will have on the sector and ensure that provisions are made to protect against this.’