About 40% of landlords are negative about the prospects for buy-to-let, but the majority remain positive or neutral, according to new research from Landbay.
The lender’s latest survey, conducted in late December and early January, shows that landlords are aware of the challenges facing the sector, but are continuing to plan and adapt rather than retreat.
Nearly half of respondents said they currently have no plans to buy or sell property in the next 12 months, while around a third say they plan to take action and a significant proportion are still exploring their options.
When asked whether the budget would affect their plans, landlords were evenly split, with 44% saying they would buy or sell as a result and a further 44% saying it would not affect their decisions.
The remaining 12% said they were not sure.
Landbay’s research shows that there are significant remortgage opportunities for advisors and their clients.
More than a third of landlords say the interest rate on their most recent buy-to-let mortgage was above 5%.
According to Landbay, switching old deals to the lower rates now available on the market could save many thousands of euros.
The research also shows strong continued support for advice, with around three-quarters of landlords saying they would use the same adviser again for their next mortgage.
Among landlords planning to restructure their portfolios, the majority said they expect to review ownership structures, with properties in individual names potentially moving to limited liability companies.
Planned rent increases were generally limited, with most landlords expecting increases broadly in line with inflation or slightly above, due to uncertainty about future costs and compliance requirements.
More than a third of landlords said the interest rate on their most recent buy-to-let mortgage was above 5%, which Landbay said reflected loans secured at the peak of the recent interest rate cycle.
Landbay sales and distribution director Rob Stanton said: “The results of this new version of our research show that landlords are incredibly realistic about the current pressures in the sector, especially around tax and regulation.
“But they are also actively involved in the market and looking for ways to improve the performance of their portfolios.
“Landlords were clearly unhappy with the budget, but they are taking steps to mitigate measures that could increase their costs.
“Many are planning to expand portfolios, shift ownership structures and raise rents to remain profitable.
“One of the most important insights is how many landlords have mortgages with higher interest rates, taken out when prices were less favorable.
“The good news is that prices have changed significantly over the past six months and advisers are likely to make significant savings for borrowers looking to remortgage.”