The number of buy to let investors in the UK has hit a record high of 2.5m in the latest tax year – that’s five per cent up on the previous 12 months – according to data released by Ludlowthompson.
The number of landlords has increased 27 per cent in the past five years, up from 1.97m in 2011-12, and landlords now own an average of 1.8 buy to let properties each – rising for the fifth consecutive year.
Property specialists, Parkmans, believes the fundamental aspects that make the UK buy to let market attractive to investors remain strong, including demand continuing to outstrip supply.
Charlotte Burles Corbett, Parkmans Managing Director said: “The long-term picture for the buy to let market remains strong. The private rental sector is a fast-growing sector in Wales, with more and more people and families, across the demographics, choosing to stay in rented accommodation, or are dependent on it.”
Bank of England data also shows the resilience of the buy to let sector, despite the introduction of the three per cent stamp duty surcharge on additional homes, plus new mortgage stress tests and the tapering of mortgage interest relief.
Charlotte adds, “Even taking into account the implementation of 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.”