Buy-to-let’s enduring appeal sees number of investors hit record high

Canny investors have long recognised the appeal of buy-to-let – and the asset class is continuing to grow in popularity: our own research shows that number of buy-to-let investors are now at a record high of 2.5 million! That’s up 5% in just a year, and a 27% rise in the last five years.

It’s easy to see why. Long-term landlords with ludlowthompson have seen average annual total returns of 9.9% per annum since 2000, and investors continue to see residential property, especially in London, as a strong investment. Portfolios are growing in size - investors now own an average of 1.8 buy-to-let properties each – rising for the fifth consecutive year.

That’s because the fundamental aspects that make the UK and London market attractive to investors are strong, not least due to demand being forecast to outstrip supply for some time to come. The latest Government statistics predict that the population of London alone will increase to approximately 10 million by 2035.

Ensuring a healthy private rental sector is good for the economy, supporting growth by allowing greater labour mobility, so that more talented individuals can come here to live and work.

Stephen Ludlow, Chairman at ludlowthompson, says: "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.”

“Our own figures underline the strength of London’s attraction with a steady flow of rental applicant numbers since the start of 2018. In addition, job creation in the capital remains healthy, its social scene is vibrant and its universities are world-class and new, better transport links continue to come online.