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TODAY'S OTHER NEWS

BTL landlords earned £34bn in rental income last year

Private landlords across the UK collectively earned £33.8bn from their buy-to-let investments in the year from 5 April 2017 to 2018, which is up 4.3% from £33.4bn in 2016/17.

According to the estate agency, landlords living in London earned the most amount of money, seeing £7bn in total revenue from their residential property investments in 2017/18, up 6.4% year-on-year.

Stephen Ludlow, chairman at ludlowthompson, said: “Landlords, living in London and across the UK, can be sure their buy-to-let properties remain a sensible, long-term investment.”

Despite government changes to available tax relief, ludlowthompson estimate that buy-to-let landlords are still expected to benefit from approximately £16.7bn in relief even once the changes are fully phased in by 2020, which would outperform other asset classes over the long-term, including government bonds, cash ISAs and shares.

Ludlow added: “Whilst house prices are not a one-way bet, they have been far less volatile than other asset classes like shares.

“When you see the share price of one of the UK’s biggest banks fall 9% in a day, based on no corporate news at all, you can see why investors prefer the relative stability of residential property.

“The benefits of buy-to-let extend beyond landlords. The private rental sector plays a vital role in ensuring there is a healthy supply of high-quality rental accommodation that enables labour mobility. Renting is, in fact, part of the solution to the housing crisis.”

Landlords living in London see 6.4% growth in BTL income in a year compared to just 4.3% growth UK-wide average

Total value of property income

 

2015/16

2016/17

% change 1 year

UK

£33.4 bn

£34.8 bn

4.3%

London

£6.6 bn

£7.0 bn

6.4%

20% of the total income from property in the UK in the last year was made by landlords living in London

 

2016/17

Local Authority Name

Average property income per landlord (£)

Total value of property income (£m)

1

Kensington and Chelsea

£34,000

£306m

2

Westminster

£33,000

£295m

3

City of London

£32,000

£32m

4

Camden

£28,000

£364m

5

Barnet

£25,000

£585m

6

Hackney

£24,000

£181m

7

Epping Forest

£23,000

£9m

8

Hammersmith and Fulham

£23,000

£181m

9

Islington

£22,000

£66m

10

Brent

£21,000

£335m

11

Enfield

£21,000

£332m

12

Redbridge

£21,000

£369m

13

Elmbridge

£20,000

£11m

14

South Bucks

£20,000

£7m

15

Wandsworth

£19,000

£388m

16

Harrow

£19,000

£348m

17

Hertsmere

£19,000

£7m

18

Hounslow

£19,000

£151m

19

Lambeth

£19,000

£261m

20

Runnymede

£19,000

£4m

-

TOTAL LONDON

£20,000

£34.8m

-

TOTAL UK

£14,000

£7.0bn

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    Or another way of putting this would be to say Landlords save Generation Rent, Councils and Government up to £1000 billions in investing in affordable housing by doing it for them - but that would be too much like giving Landlords due credit for doing a vital but thankless job!

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