There have been many changes within the UK property market over the past two years, especially if you’re a landlord. Increases in stamp duty and changes to tax regulations for the buy-to-let sector are just two examples of the hurdles for investors.
Many would expect this to deter investors with a smaller portfolio. However, recent figures have shown quite the opposite scenario with activity in this sector only increasing in recent years.
According to new data from the HMRC and analysed by ludlowthompson, the UK has a record number of landlords, currently standing at a peak of 2.5 million.
The number of landlords operating in the UK once stood at 1.97 million, but that has risen by 27% over the past five years, which is quite the rise when considering the stricter rules put in place for the buy-to-let market and the uncertainty surrounding Brexit.
The number of properties being let has gone up
It was also found that, on average, each landlord now owns 1.8 buy-to-let properties, a figure that has seen a rise for its fifth consecutive year.
There were reports early last year that property was the most profitable investment choice by some distance, and in comparison, to other investment opportunities such as the FTSE 100, saving accounts and even gold, property outperformed all of them in terms of profit.
This looks set to continue as recent data has shown that long-term landlords have seen an average annual return of 9.9% since the year 2000.
Managing Director of Fife Properties – Jim Parker – commented on the findings of their analysis, stating “Rising numbers of landlords shows the enduring appeal of buy-to-let, particularly in Fife, Scotland and as we are Fife’s No.1 Letting Agents 8 times now we are perfectly positioned to look after our Landlords and Tenants needs”
Many experts expect the market to remain resilient despite tougher rules put in place by the Government and still consider the property market a solid investment for anyone’s portfolio.
