A recent study by LSL Property Services found that landlords’ finances are at their healthiest in nearly 10 years. Surprisingly, given recent changes, the figures have shown that buy-to-let mortgage arrears have dropped dramatically since the last quarter of 2015 and are at their lowest level since the back end of 2007. In the survey there were just 9,300 cases of mortgage arrears being three months overdue in the first quarter of 2016, a drop of 9.7% from the previous quarter. The Government changes to the rental sector, which many experts predicted would leave landlords out of pocket, include a hike in stamp duty, which came into force in April and further tax allowance cuts coming from April 2017. LSL’s Adrian Gill said the drop in arrears is due to lower tenant evictions, rent inflation, a more stable housing market and falling rent arrears. “Any new risks for landlords are now as a result of anti-renting policies – well-intentioned but possibly misguided attempts to further improve the private rented sector. “Landlords witnessing this storm of regulatory change will need to build their cash reserves and reassess their business models. But they are in a very good position to do so,” said Mr Gill. Gill underlined the threat from upcoming changes to tax relief or mortgage interest, but he said many could avoid being left out of pocket. “For many smaller landlords and for those without significant external income,… the phasing out of tax allowances at the higher rate could be minimal if they don’t fall near the higher tax bands in the first place. “But professional landlords with more than a couple of properties could be hit harder. “Regardless of their situation all landlords should know where they stand – with a revised plan and the proper advice to make sure they can continue to operate successfully under the new rules.” It has yet to emerge how the referendum vote out will affect buy-to-let, whether as some are predicting it will have a positive effect, or the exact opposite?