Housing market: The count of buy-to-let property investors hits an all-time peak even after a tax increase.

The government has introduced a 3% Stamp Duty levy, new stress tests for home loans, and ended mortgage interest tax relief
Recent research reveals that the number of buy-to-let investors in the UK has reached an all-time high of 2.5 million in the most recent tax year, marking a 5% increase from the previous year. This growth occurred despite the introduction of additional taxes and stricter regulations in the sector. Over the past few years, the government has implemented measures such as a 3% Stamp Duty surcharge, new stress tests for mortgages, and the removal of mortgage interest tax relief.

According to a study by Ludlow Thompson, a London-based estate agent, the number of landlords has surged by 27% over the last five years, rising from 1.97 million in 2011-12. On average, landlords now own 1.8 buy-to-let properties each, a figure that has increased for the fifth year in a row.

The data suggests that landlords continue to see residential property, especially in London, as a strong investment, despite signs that house price growth has stalled or even gone into reverse in some areas in the last year.

Chairman Stephen Ludlow said the rising number of landlords shows the enduring appeal of investing in buy-to-let. “The long-term picture for the buy-to-let market remains strong,” he said. “Even taking into account the implementation of government changes to buy-to-let tax relief, there are a number of tax reliefs available to landlords.”

Recent Bank of England data also suggests resilience in the sector, with 12.7% of mortgages in the final quarter of 2017 going to buy-to-let investors, although this was a slight decrease from 14.4% the previous year.