Selling landlords getting good returns

The latest figures found sellers in London gained £253,981, over four times more than those selling outside the capital. One in four landlords who sold their home in London did so for at least twice what they paid for it an average of 8.3 years ago.

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 most landlords have made a profit from rising prices.

Landlord gains are slightly behind owner occupiers, who on average made £92,886 when selling their home in 2017/18. The average owner occupier made 7% more than a landlord when selling their home last year. This is because the average landlord selling their property in 2017 owned it for 8.7 years, rather than nine years for an owner occupier.

With the highest house prices and strongest capital growth over the last nine years, landlords who sold in London and the South East generally made the biggest gains.

These figures just go to prove that landlords are correct in their belief the UK offers a very good long-term return on property investment. Experts are predicting a slowdown in growth over the next 10 years but having said that potential returns are very favourable. Considering all the new tax implications as well as capital gains tax the future still looks very bright for existing and new landlords.

If you are looking for mortgage advice, please do make contact and one of our advisers will be pleased to assist.