Confidence in the buy-to-let market remains strong despite taxation changes and the economic uncertainty as a result of the vote to leave the EU.
According to the of Bank of Ireland UK’s Buy-to-Let Market Index, more than half of landlords (54%) think that the vote to leave the EU will make no difference to their buy-to-let investments and one in five (19%) believe that Brexit will actually be beneficial to their business.
The study found that almost half (46%) of current landlords with two or more properties expect to increase the size of their holding over the next few years.
Meanwhile, 52% of homeowners would like to become a landlord if they were able to afford it and the increasing demand for private rental property means that 48% of people are more likely to invest in buy-to-let.
Over half (55%) of landlords admit that it’s likely that they will increase rents and more than a third (38%) are likely to switch mortgages in order to reduce the impact of tax relief changes on mortgage interest payments.
Mark Howell, director of marketing and customer management at Bank of Ireland UK Mortgages, said: “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. 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 tax changes will have on the sector and ensure that provisions are made to protect against this.”
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