Landlords are increasing rents (24%), maintaining their current supply of properties without buying more (21%) and are selling some of their properties (16%).
John Heron, managing director at Paragon Mortgages, said: “We’ve reached a critical time for landlords looking to plan ahead.
“It’s clear that landlords’ understanding of the changes has improved and that more landlords are developing a clear strategy to address the impact of the changes.”
Over 20% of landlords surveyed are now more optimistic than three months ago as they come to terms with the impending tax changes that the government announced in 2015.
Heron added: “Despite increasing optimism, we must remain cautious. The changes have not started to be implemented yet and the full impact will not be felt for many years.
“Whilst it is predictable that landlords will seek to increase rents in response to higher costs this clearly will not be good news for tenants, particularly those that are already struggling to save for a deposit.”
Tenant demand remains high, with 94% of landlords describing the market as stable or growing and fewer than one in 30 suggesting a decline.
There has been widespread calls for the government to rethink the landlord tax, or Section 24, in the upcoming Budget on March 8.