Chancellor George Osborne announced earlier this year that landlords would have the amount of tax relief they recieve limited.
Landlords will also face restrictions on the amount of ‘wear and tear’ they can offset against tax.
However, this does not appear to have harmed the growth of the sector. Research by lender Paragon found that almost a fifth (17%) of landlords planned to increase their portfolio over the summer.
Terraced properties and semi-detached houses remained the most popular investments (both 38%), followed by 35% who wanted to buy apartments.
Three-quarters of landlords said they believed arrears would remain steady in the next 12 months, despite rising rents across many areas of the UK.
Mortgage brokers and other financial advisers were exclusively used by 37% of landlords. The proportion of investors dealing directly with a bank dropped to 15%.
Just under a third (32%) used a mix of direct and intermediary deals.
John Heron, director of Paragon Mortgages, said the sector remained positive about future profitability.
“Landlords continue to experience strong tenant demand and are keen to add to their portfolios,” he said.
“The positive signals being picked up elsewhere around the economy also seem to have flowed through to the private rental sector with landlords experiencing low arrears and low, stable voids.”
