TAX changes which were predicted to hit buy-to-let landlords have not had a “significant” impact on business for Bournemouth-based property business MartinCo PLC.

Then-chancellor George Osborne announced in 2015 that landlords would face a phased rise in stamp duty.

He also decided they would not be able to deduct the cost of mortgages from their rental income when calculating their taxable profit.

But despite the changes, MartinCo PLC saw revenue rise 15 per cent to £8.2million in 2016, it said in a trading update, with buy-to-let investors finding ways around the changes.

Its CEO, Ian Wilson, said: “We do not envisage the government’s recent interventions in the buy-to-let sector significantly impacting our business.

“Buy-to-let investors have generally reduced gearing in their portfolios over the years since 2008 and are believed to be able to absorb rising interest rates.

“We are well positioned to sell investment properties if investors decide to exit, and our research suggests that larger buy-to-let investors would purchase this stock.”

He added: “Early indications from the mortgage industry show that investors are beginning to incorporate their activities into trading companies to avoid the stamp duty surcharge and to retain the benefit of interest tax relief on buy-to-let loans.

“We remain positive about the outlook for our core lettings business, from which 74 per cent of our franchise royalty income is derived. I look forward to providing a further update at our full year results in April.”

The company said the factors driving expansion in the rented sector were still in place – including high net migration, a restricted supply of housing and the hurdles of affordability and deposits for first time buyers. Pension reform in had also unlocked funds for over-55s to invest in property.

MartinCo Group, based in St Stephen’s Road, operates one of the UK’s biggest property franchise businesses, with 377 offices under six franchise brands – Martin & Co, CJ Hole, Parkers, Ellis & Co, Whitegates and EweMove.

It bought EweMove – a “hybrid” estate agency combining a physical business with an online platform – last year. MartinCo expanded in 2016 from 287 offices after acquiring EweMove and its 96 franchisees.

MartinCo said trading in the final months of 2016 was “robust” despite challenging conditions in the immediate aftermath of the EU referendum vote. EweMove made a “modest” contribution towards earnings.