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Landlord numbers have grown by 27 per cent in the past five years, rising from from 1.97 million in 2011-12.
New research by London-focused estate agent Ludlow Thompson found that landlord numbers are on the rise, and landlords now own an average of 1.8 buy to let investment properties each. This figure has risen for the fifth consecutive year.
The research findings suggest that landlords continue to consider residential property as a strong investment, particularly for those based in the capital. This is in spite of the fact that house price growth is alleged to have stagnated in the last year.
Ludlow Thompson’s research found that investors have seen annual returns of almost 10 per cent since 2000.
Chairman Stephen Ludlow commented: ‘The long-term picture for the buy to let market remains strong. 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.’
The improvement in the market comes amidst increased regulation imposed by the current government. The government has recently introduced a 3 per cent Stamp Duty surcharge and has added new stress tests for home loans. There is also no longer mortgage interest tax relief available for landlords.
Of the significant changes to the buy to let sector, the phased reduction of mortgage interest tax relief, which began exactly a year ago in April 2017 has caused the biggest financial shock for investors. This is according to new research from Property Partner, which found that 64 per cent of respondents had their finances negatively impacted by the change.
Recent Bank of England data has also indicated that the buy to let sector is remaining strong. The data found that 12.7 per cent of mortgages in the final quarter of 2017 came from buy to let investors. Whilst this is a sizable figure, it does show slight decline from 14.4 per cent a year earlier.