Profitable Resolve to Trying Times for Buy to Let landlords in the UK
The government’s efforts in making the buy-to-let sector less appealing to investors seem to have prevailed.
Over the past three years, the number of UK landlords has declined by around 120,000 according to estate agent Hamptons International. Yet landlords are leaving the sector behind with significant profits. On average, a landlord in England and Wales will have sold their buy-to-let property for almost £80,000, more than they bought it for after owning it for ten years, prior to taxation.
In the previous year, 85% of landlords sold their property at a profit, with the rest making a loss. The location, however, is key in these figures; London landlords made almost three times the national average, selling at £248,120 profit. 2017 was even more lucrative for London landlords however, with profits standing at £272,120 and a national average of £83,430 in profit.
Until recent years, buy-to-let was a relatively stable source of income and capital growth for landlords. Government concerns over landlords increasing prices beyond the grasp of first-time buyers has since slowed the buy-to-let frenzy, just as the Help to Buy program continues to have the same effect.