Bringing you live news and features since 2006 

Number of buy-to-let investors in the UK hits record 2.5 million high

RELATED TOPICS​

The number of buy-to-let investors in the UK has hit a record high of 2.5 million in the latest tax year showing the continued popularity of the sector – up 5 per cent in a year, according to research by London estate agent ludlowthompson.

The number of landlords has increased 27 per cent in the past five years, up from 1.97 million in 2011-12. Landlords now own an average of 1.8 buy-to-let properties each – rising for the fifth consecutive year.
 
ludlowthompson explains that investors and landlords continue to see residential property, especially in London, as a strong investment. Long-term landlords with ludlowthompson have seen average annual total returns of 9.9 per cent per annum since 2000.
 
ludlowthompson says that the fundamental aspects that make the UK and London market attractive to investors are strong, including demand continues to outstrip supply. The latest Government statistics predict that the population of London alone will increase to approximately 10 million by 2035.
 
ludlowthompson adds that ensuring a healthy private rental sector is vital to economic growth by allowing individuals greater labour mobility.
 
Stephen Ludlow, Chairman at ludlowthompson, says: “Rising numbers of landlords shows the enduring appeal of buy-to-let, particularly in London.”
 
“The long-term picture for the buy-to-let market remains strong. As a ‘London-leaning’ Brexit looks more likely, a final deal will focus on strengthening the appeal of the capital as a go-to destination for overseas professionals, graduates and students alike.
 
“Our own figures underline the strength of London’s attraction with a significant increase in rental applicant numbers since the start of 2018. In addition, job creation in the capital remains healthy, its social scene is world-class and new, better transport links continue to come online.”
 
Recent Bank of England data also shows the resilience of the sector, despite the introduction of the 3 per cent Stamp Duty levy, new stress tests, and the tapering of mortgage interest relief. 12.7 per cent of all mortgages in Q4 2017 went to buy-to-let investors, a slight dip from 14.4 per cent in Q4 2016 and 16.3 per cent in 2015.
 
Ludlow says: “The level of buy-to-let mortgage lending shows the sector’s continued resilience considering that the 2015 level includes investors rushing to beat the new Stamp Duty. Additionally, the difference is likely to be much smaller as the figures do not include investors that have incorporated, refinanced, or made additional purchases using commercial loans.
 
“Even taking into account the implementation of Government changes to buy-to-let tax relief, there are a number of tax reliefs available to landlords. Investors should also note that, historically, growing earning power and rising wages have tended to lead to rising rental values.”
 
Previous research from ludlowthompson shows that even when the new buy-to-let tax changes are fully implemented, investors are still set to benefit from GBP16.7 billion in tax relief.

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by