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According to data released by HMRC, there was a 7% rise in landlord acquisitions in 2013-14, but given the recent surge in lending this figure is now likely to be a lot higher.
HMRC figures reveal that there were 1.75 million buy to let landlords declaring income from properties between 2013 and 2014.
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This was an increase from 1.63 million registered the previous year. During 2013-14, buy to let landlords banked £14.2 billion; up from £13.1 billion.
Low Interest Rates
Buy to let has boomed in recent years. Interest rates are currently historically low, so borrowing money has never been so cheap. This, combined with the rising demand for rental homes, has propelled a lot of people into the property market.
There is a lot of money to be made from property investment. Prices in London have risen by 13.9% over the last year. Meanwhile, during the same period, the FTSE 100 has dropped by 8.8%.
Rise in Stamp Duty
It isn’t all a bed of roses, however. The Chancellor has recently increased stamp duty for anyone who owns a second property. The extra 3% on second properties represents a large charge to landlords who decide to sell off their portfolio.
Despite this, many landlords still think property represents the best place for their money. Indeed, the National Landlords Association is confident that landlords will adapt to the changes. As a result, experts fear that many tenants will soon find it hard to find landlords willing to take them on if they are deemed a high risk tenant.
