Private landlords’ net income has risen 39 per cent in the last five years, jumping from £10.8 billion to £15 billion calculates the letting agency ludlowthompson.
The agency also says private landlords’ income has risen six per cent in the last year alone from £14.2 billion.
The firm says that as an investment class over a long term comparison, residential property continues to outperform other asset classes, including government bonds, cash ISAs, and shares. With gilt yields still close to record lows, and the Bank of England base rate currently at a historic 0.25 per cent, the agency adds that buy to let remains highly attractive as a mainstream investment.
This will remain the case notwithstanding the government’s planned tax relief changes take effect, says ludlowthompson.
“Landlords will still have access to over £14 billion in tax relief, including £6.3 billion worth of tax relief on the interest rate payments made on mortgages used to purchase a buy to let property” says the agency.
“Private landlords play a vital role ensuring 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 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” says the firm’s chairman, Stephen Ludlow.