STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Average BTL landlord who sold last year gained £86,651 – Countrywide

The average buy-to-let investor who sold their rental property in 2017 did so for £86,651 more than they paid for it, having owned the home for an average of 8.7 years, new figures from Countrywide show.

Although the average gains made by landlords are impressive, they are not as high as owner occupiers who made on average £92,886. But this higher figure reflects the fact that on average they owned their property for a slightly longer term of nine years.

Unsurprisingly, London landlords who sold up last year made the greatest profit, at an average of £253,981, which is over four times more than the average landlord selling outside the capital.

Eight of the ten places where landlords made the highest percentage gains were in London, with Maldon in Essex (118%) and Pendle in Lancashire (109%) being the only exceptions.

Landlords in the North East made the smallest gains, £23,874, over 10 times less than a landlord in the capital. 

Landlords selling in Selby in North Yorkshire made the lowest percentage profit of 14%, but still made £9,703 on average.  

Johnny Morris, Research Director at Countrywide, said: “House price growth has driven investor gains.  Landlords selling in 2017 owned their homes for nearly nine years.  In 8 of those last 9 years house prices have risen. 

“Even in areas where price growth has lagged behind most landlords have made a profit from rising prices.”

Rents in London grew-faster than any other region for the third consecutive month to stand at £1,686, 3.1% above last year’s level, according to Countrywide. 

Scotland was the only region to see rents fall last month.

Morris added: “Rents continued to grow in January. London continues to see the greatest falls in the stock of available homes to rent, on the back of reduced investor activity, this scarcity of supply is driving rental growth.”

Table 1 – Average 2017 landlord seller gain

 

Average profit (purchase price – sale price)

Proportion of sellers making a profit

Proportion of sellers doubling their money

London

£            253,981

96%

28%

South East

£            108,073

97%

15%

East

£              84,265

94%

13%

South West

£              57,249

91%

11%

West Midlands

£              40,381

85%

11%

East Midlands

£              38,776

87%

12%

North West

£              34,519

80%

12%

Yorkshire and the Humber

£              32,671

78%

11%

Wales

£              30,938

79%

13%

North East

£              23,874

75%

9%

England & Wales

    £              86,651

88%

14%

Source: Countrywide    

-3-

Table 2 – Top 10 local authorities where landlords selling made the biggest profit (%)

Local Authority

Average profit (%)

Average profit (£)

Brent

135%

£            278,795

Waltham Forest

120%

£            192,840

Maldon

118%

£            102,466

City of Westminster

118%

£            494,892

Haringey

116%

£            292,017

Lambeth

112%

£            263,112

Pendle

109%

£              19,525

Islington

106%

£            365,943

Kensington & Chelsea

103%

£            696,665

Southwark

103%

£            258,760

Source: Countrywide 

Table 3 – New Lets (pcm)

 

Feb-18

Feb-17

YoY

Greater London

£      1,686

 £      1,635

3.1%

South East

£      1,039

 £      1,022

1.7%

South West

£         786

 £         765

2.6%

East

£         926

 £         925

0.2%

Midlands

£         669

 £         651

2.8%

North

£         623

 £         619

0.7%

Scotland

£         587

 £         612

-4.1%

Wales

£         651

 £         646

0.8%

Great Britain

£         954

 £         935

2.1%

Source: Countrywide

icon

Please login to comment

valpal
submit
sign up