Number of UK buy-to-let investors hits record 2.5m high

The number of buy-to-let investors in the UK has hit an all-time high of 2.5m in the latest tax year. According to research from real estate agency Ludlow Thompson, the number of buy-to-let investors has increased five per cent in the last year, and 27 per cent over the last five years.

The new research also shows that landlords now own an average of 1.8 buy-to-let properties each, a figure which has risen consistently over last five years. London continues to be the strongest market for buy-to-let investors, despite a dip in central London’s rental value in the last month. Demand for property in the capital continues to outstrip supply.

Read more: Over-50s hold 75 per cent of UK housing wealth

“Rising numbers of landlords shows the enduring appeal of buy-to-let, particularly in London,” said Stephen Ludlow, chairman at Ludlow Thompson. “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.”

The study also suggests that the sector has bounced back after the the introduction of the 3 per cent Stamp Duty levy. Previous research from Ludlow Thompson shows that even when the new buy-to-let tax changes are fully implemented, investors are still set to benefit from £16.7bn in tax relief.

Read more: London property sale prices fall as rental values slump

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