The number of buy-to-let investors in the UK hit a record high of 2.5m in the latest tax year for which the information is available, according to a Freedom of Information request to HMRC.

It was made by London agent ludlowthompson.

It shows that the number of landlords in the tax year 2015/2016 rose 5% from the previous year, and was up by 27% in the previous five years, rising from 1.965m in 2011-12.

In 2015/2016, those landlords owned an average of 1.8 buy-to-let properties each – rising for the fifth consecutive year.

While there is no information as to whether numbers have continued to rise, or have fallen, in the last 12 months, ludlowthompson said landlords continue to see residential property, especially in London, as a strong investment.

It said its own long-term landlords have seen average annual total returns of 9.9% per annum since 2000.

Stephen Ludlow, chairman at the firm, said: “Rising numbers of landlords shows the enduring appeal of buy-to-let, particularly in London.

“The long-term picture for the buy-to-let market remains strong.

“Our own figures underline the strength of London’s attraction, with a significant increase in rental applicant numbers since the start of this year.”

However, the latest Bank of England lending figures show big drops in buy-to-let lending: last month, it reported that just 12.7% of all mortgage lending in the final quarter of 2017 was to buy-to-let landlords.

This was the lowest percentage since 2013.

The first chart below shows the rise in the average number properties per landlord; the second shows the rise in the number of buy-to-let landlords in the five years to 2015/2016, according to HMRC