The stamp duty hike aimed at the buy-to-let market has boosted landlord returns in the UK to a four year high. The 3% surcharge on additional home purchases is part of a string of measures being introduced by the government to hit the private rented sector, but landlords have enjoyed an unexpected benefit. The latest buy-to-let index shows that the scramble to buy property before 1st April deadline boosted house values considerably, delivering a much needed increased equity bonus to existing landlords. Taking into account both rental income and capital growth, but before property upkeep costs such as maintenance, the average landlord would have shown 12% gross returns over the last 12 months. So on average across the country in absolute terms landlords in England and Wales have seen returns of £22,000 over 12 months before deductions. Of this figure capital gain would have contributed £13,000 while rental income made up the balance of £9000. These figures are a very welcome sight to landlords as they have without doubt had a very challenging year. Despite all the new tax changes looming the majority of landlords remain confident of the future.
