Number of buy to let investors hits record high

The number of buy to let investors has reached 2.5 million in the latest tax year, the highest ever recorded in the UK and up five per cent up on the previous 12 months.

According to real estate agency Ludlow Thompson, there has been a 5 per cent increase in the number of buy to let investors in the past year alone, and a 27 per cent increase 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.

London continues to be the strongest market for buy-to-let investors, despite a dip in central London’s rental value in the past month. Demand for property in the capital continues to outstrip supply.

The report explains that a healthy private rental sector is vital to economic growth, by allowing individuals greater labour mobility.

Stephen Ludlow, Chairman at Ludlow Thompson, says: “Rising numbers of landlords show 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.”

According to the report, the introduction of the 3 per cent Stamp Duty levy has caused a bounce back in the sector. Previous research from Ludlow Thompson shows that even when the new buy to let tax changes are fully in place, investors are still set to benefit from £16.7 billion in tax relief.

“The level of buy-to-let mortgage lending shows the sector’s continued resilience,” said Stephen. “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.”

At Beavis Morgan, we have extensive experience in advising individuals and businesses on all aspects of the property market. We act for a broad range of property investors and developers who actively need advice on how to best structure their property deals, both to ring-fence and protect their property assets, as well as to minimise the tax arising from their business operations.

We also offer specialist services to identify business opportunities for overseas investors looking to enter the UK property and business market – and we provide a comprehensive range of professional services to help you make the most of your investment in the UK.

For further information contact Steve Govey or your usual Beavis Morgan Partner.