The future is optimistic for buy-to-let (BTL) investment, with data showing that landlords’ income from property is hitting a record high of £15 billion in the most recent year – highlighting the importance of buy-to-let as an economic driver.
Total net income has also increased by 39% in the last five years, despite the last few years’ seeing many legislative changes that have created extra paperwork and admin for landlords, as well as more irrecoverable costs.
They report that BTL property will still be attractive to investors even after the Government’s planned tax relief changes are brought in gradually from April, with landlords still being able to access some £14 billion in tax relief, including £6.3 billion worth of relief on the interest paid on mortgages.
Stephen Ludlow, Chairman at Ludlow Thompson, comments: “Private landlords play a vital role ensuring there is a healthy supply of high-quality rental accommodation that enables labour mobility.
“The fact that the recent housing white paper recognises the importance of the rental market to many people’s lives is highly encouraging and a step in the right direction. It is finally beginning to acknowledge that renting is, in fact, part of the solution to the housing crisis.”
The UK buy-to-let market is worth more than £227bn according to latest reports.