Landlords who have chosen to buy since the introduction of the 3% stamp duty surcharge in April 2016, have relied more heavily than ever on cash to fund their purchases and the proportion of landlords paying in cash for a property reached 61% in January 2017, the highest since records began in 2007.

Over the last decade the proportion of landlords buying with cash has steadily increased. In 2007 just 41% of landlords bought a home without a mortgage, a figure which peaked at 58% by 2010 before dropping back.

Landlords buying homes in the North of England are most likely to use cash to fund their purchase. 70% of landlord purchases in the North West of England are in cash, a larger proportion than anywhere else. In similar fashion to those who buy a home with cash to live in themselves, London landlords are most likely to use mortgage finance. As house prices in the capital have risen, there has been a correspondingly sharp fall in the number of landlords not using a mortgage.

Commenting Johnny Morris, research director at Countrywide, said: “With the forthcoming tapering of tax relief on mortgage interest payment, landlords have less of an incentive to borrow, suggesting more cash activity in 2017.”