Number of UK landlords rises 7% to 1.75 million
Wednesday 08 June 2016
Investors are still snapping up buy-to-let properties after figures revealed there are now more than 1.75 million Landlords in Britain.
The statistic shows the market is continuing to thrive, despite the uncertainties caused by Government's recent reforms.
The eye-popping figure released by estate agent ludlowthompson is actually a record high following a surge in buyers over the last 12 months.
The market increased by 7% in the past year alone.
Perhaps even more impressive, the report said rental income climbed by 8% from £13.1 billion to £14.2 billion, minus costs.
London was singled out in the report with almost a third of people now living in the rental sector.
"Buy-to-let routinely outperforms other investments"
"Investors continue to be drawn to the buy-to-let market as the returns routinely outperform those of other investments," said Stephen Ludlow, the estate agent's chairman.
"Buy-to-let investments are a highly popular alternative to the volatility investors often risk when investing in the stock market."
The introduction of Chancellor George Osborne's 3% stamp duty hike at the start of April was sparked a rush for additional property in the weeks prior.
However, the report by ludlowthompson suggests years of low interest rates has seen people turn to a more stable way of saving.
And experts suggest the number of buy-to-let investors could continue to climb with interest rates now not expected to rise until December 2019.
Number-crunchers will also realise that buying second homes while interest rates remain low could even offset the recent rise in stamp duty, still making it a very attractive proposition.
Despite the promising short-term future of the market, buy-to-let mortgage lender specialists, Paragon, has warned the second half of 2016 is certain to show weaker results than the first half thanks to the rush of investors who looked to finalise deals before April's stamp duty levy.
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