Confidence is returning to the buy-to-let market and optimism increasing among landlords as they gain more clarity over the changes affecting the industry.
According to a new study, 78% of experienced residential landlords now grasp the implications of the changes to mortgage interest tax relief.
In the final quarter of last year, 11% of landlords said they did not understand the implications of the mortgage interest tax changes, which compares with just 7% today.
Changes to mortgage interest tax relief are being phased in between April 2017 and April 2020, so landlords have time to consider their options in light of the changes.
Many landlords have already taken steps to incorporate, transferring their properties into limited companies, as when they do so, these tax changes do not apply.
Despite a challenging few years for the sector, in which landlords have had to deal with multiple changes, including the introduction of an additional 3% stamp duty surcharge on the purchase of second homes, optimism seems to be returning as landlords take stock of the changes and work out ways to hold on to their profits.
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