New buy-to-let landlords are continuing to invest in the sector, according to new figures released by estate agent ludlowthompson.
Record low interest rates, stock market volatility and more than healthy demand are all contributing in driving new landlords to the sector.
Buy-to-let boom
Ludlowthompson’s data, collated with HM Revenue & Customs, indicates that the number of UK landlords increased by 7% during 2013-14 to hit 1.75m. This was in comparison to 1.63m in 2012-13.
During 2013-14, landlords accumulated £14.2bn in net income from their rental assets, a rise from the £13.1bn in the previous twelve months.
The data provided from HMRC is the most up to date information available on landlord numbers. However, the actual volume is greatly expected to have increased, given the surge in mortgage lending to landlords ahead of the Stamp Duty alterations earlier this year.
Buy-to-let landlord numbers continue to rise
Undeterred
Despite the Stamp Duty changes, alongside the reduced tax breaks for buy-to-let landlords coming into force in 2017, early signs are that investors are not being deterred.
A recent report discovered that buy-to-let is performing better than all other asset classes, including UK Government bonds, shares and commercial property.
Stephen Ludlow, chairman of ludlowthompson, observed that buy-to-let returns, ‘routinely outperform those of other investments.’
Mr Ludlow went on to say, ‘investors continue to be drawn to the buy-to-let market as the returns routinely outperform those of other investments. Buy-to-let investments are a highly popular alternative to the volatility investors often risk when investing in the stock market.’
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/5/number-of-uk-landlords-edges-closer-to-two-million