How landlords are protecting themselvesMany landlords have already taken action to keep their outgoings to a minimum, following regulatory changes.
A third (33%) of landlords have, or are planning to, set up a limited company to reduce the impact of the changes, according to the survey. This route has it downsides however, as the limited company must effectively buy the properties and will have to pay stamp duty and potentially incur capital gains tax. It's therefore vital that landlords considering setting up a company seek professional tax advice first.
A further 18% of landlords plan to remortgage to help keep their outgoings down, according to the BTL barometer. There are often substantial savings to be made by switching to a new mortgage, particularly for landlords currently languishing on their lenders' standard variable rates.
Nearly a fifth (19%) are looking to sell their properties, whilst half (49%) say they are going to wait and see what happens over the next few months before they decide which course of action to take.
Karen Bennett, managing director of Shawbrook Bank Commercial Mortgages, said: "We have seen a slight cooling as landlords evaluate their options, not rushing into purchases and holding existing property. It is important to recognise however, that BTL remains a crucial component in the wider UK housing landscape, and data suggests that although investors may tread carefully throughout 2018, they retain confidence in the fundamentals of this market."
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