There was a 35% increase in home loans advanced to UK buy-to-let investors in November compared to a year earlier, BBC reports.
According to Council of Mortgage Lenders (CML), the leap raises the figures of buy-to-let loans to 23,000, although it is 6% lower than the readings on October.
Starting April, a 3% stamp duty surcharge will be charged to landlords in England and Wales.
Furthermore, tax breaks currently available to landlords will be altered when the proposed changes start rolling in over the next few years.
"Landlords may be disgruntled by the double whammy of tax changes and the impending hike on stamp duty, but they can't complain about some of the cheapest buy-to-let rates ever," said Mark Harris, chief executive of mortgage broker SPF Private Clients
"Many landlords are taking advantage of low rates and the removal of tax breaks with remortgaging accounting for the majority of activity in the sector.
"However, lenders are imposing tighter criteria on buy-to-let mortgages when it comes to stress testing, and others are expected to follow, making it harder to qualify for higher loan-to-value mortgages, particularly in the south [of England] where yields are low."
Loans advanced in the buy-to-let sector increase in value by 46% to £3.5bn in November in comparison to the values in the same month a year before.
The value of loans advanced in the buy-to-let sector increased by 46% in November compared with the same month a year earlier, to £3.5bn.
Looking at the entire UK mortgage market, there was a 9.3% leap in the number of home loans advanced for house purchases which is higher in comparison to the same month a year before, and the CML believes that the next two years will see a steady increase in mortgage lending.
In November, 60,100 mortgages were advanced, although it is 9.2% below the numbers from October.
According to CML, the seasonal dip was "normal.
"Mortgage lending activity eased back as the normal dip in the winter months began," said Paul Smee, director general of the CML.
"There was still growth across all lending types in November compared to the year earlier suggesting continued improvement. Our forecasts anticipate that gross lending will continue a slow but steady upward trajectory over the next two years."
