The number of UK landlords has broken through 1.75 million barrier, highlighting the rapid growth of the buy-to-let sector.
According to estate agent Ludlowthompson, the number of buy-to-let investors has grown 7% in the past year from 1.63 million.
The rental income of these investors has also increased by 8% in the past 12 months to £14.2 billion.
The buy-to-let market has surged in recent years, with investors attracted by cheap mortgages, low interest rates and rising rents.
In April a 3% stamp duty increase was introduced as part of the government’s attempt to curb the buy-to-let market and free up property for first-time buyers. The basic rate of tax relief landlords can claim on properties is also set to fall to 20% from April 2017.
In the run up to the introduction of the stamp duty charge there was a boom in borrowing as buyers brought forward transactions to beat the deadline.
Stephen Ludlow, chairman at Ludlowthompson, said: “With no interest rate rise on the horizon and an ever-rising demand for rental property, investors are still flocking to London’s private rental sector.
“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.”
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