Date Published 21 March 2018
The latest research from a financial advice firm reveals that since 2011-2012 yearly increases of new landlords entering into the sector has been more than 100,000.
The figures show that during 2015- 16 nearly two million (1.9) people were receiving income/rent from their properties with a total net income worth £16.2 billion.
During 2011-12 the total net income was £12.1 billion.
The HMRC's yearly published Personal Incomes Statistics, shows that the total income taken from dividends nearly doubled over the same period, from £42.5 billion to £83.8 billion with average investor incomes rising to £17,000.
A chartered financial planner at the firm, Sean McCann, said: "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. It's not just the income that will be taxed. The latest predictions from the Office for Budget Responsibility show Capital Gains Tax receipts will rocket from £8.8 billion this tax year to £9.9 billion in 2018-19 and £13.3 billion in five years' time. So they clearly expect many investors to sell up and realise their gains between now and 2022-23."
When assets and investments are sold capital gains tax is charged and anyone who has a second 'home' or a property being rented out as a residence, will have to pay either 18% or 28% dependant on profit from the sale and revenues gained during the tax year.
However Sean added: "It's likely we'll see the number of landlords start 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. And if more people sell their investment properties and shares, there are likely to be more tax charges to pay."
Richard Merrick of PIMS said: "In spite of the many 'doom and gloom' stories being banded about a mass exodus of landlords, we have also seen an increase in new investors into the market from month on month increases in our membership."