Buy-to-lets, still proving very popular!

With savers receiving dismal returns from banks and building societies, thousands more people are still turning to buy-to-let as a means of supplementing their income, fresh income data from HMRC shows.

The figures reveal that the number of private landlords in this country has increased by more than 100,000 a year since 2011-12, with 1.9 million people having earned money from property in 2015-16 as income from property hit £16.2bn, up £4.1bn over four years.

The annual personal incomes statistics, published by HMRC, also reveals that total income from dividends almost doubled over the same period from £42.5bn to £83.8bn as average incomes soared to over £17,000 per investor.

There is little doubt the chancellor will be rubbing his hands in anticipation as these huge incomes from dividends and properties give the taxman two bites at the cherry.

Latest predictions from the Office for Budget Responsibility show capital gains tax receipts will rocket from £8.8bn this tax year to £9.9bn in 2018-19 and £13.3bn in five years’ time.

It is likely that the number of landlords is likely to “plateau or even fall” over the next few years, as property investors start to feel the pinch from a series of tax measures that have already come into force.

Whichever way you look at it the figures prove people still perceive UK property to be a good sound long term investment. If you study the figures on investment returns property has yielded over the last 20 years, it’s little wonder why.

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