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Landlords remain optimistic about buy-to-let in spite of challenges

More than two fifths (41%) of portfolio landlords aim to expand their portfolio over the next 12 months, new research shows.

The report from Aldermore, the specialist bank, shows that private landlords are generally feeling positive about the future of the market, and the opportunity it presents. But the industry faces a number of challenges following several changes over the past couple of years.

A quarter of landlords surveyed said changes in tax relief are their main challenge, while over a fifth - 22% - identified increased stamp duty as the biggest concern.

One in six - 17% - say they will pass on higher costs on to tenants by increasing rents.

Despite the challenges the industry face, just 8% of private landlords intend to reduce the number of properties they own.

Charles McDowell, Aldermore’s commercial director, Mortgages, said: “There is no denying that the buy-to-let market has taken a bit of a battering, thanks to a multitude of regulatory, underwriting and tax changes. However, we are pleased, and slightly surprised to see, that there remains a net sense of optimism amongst buy-to-let landlords.

“Despite the recent changes, many still view buy-to-let as a good investment, with expansion on the horizon, particularly amongst those who are specialists in this area.”

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    No need for us to lose heart as long as we can pass increased costs on to tenants. Only a drop in demand will stop this possibility and that's hardly likely given the millenial generation's preference for fancy cars and holidays, eating out and expensive coffee bars instead of saving for deposits.

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