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London’s private landlords earn £7bn from investments in the last year

Jamie Royston
20.12.18

From April 2017 to 2018, private landlords in the British capital earned a total of £7bn from their residential property investments, resulting in as much as 20% of the nation’s buy-to-let income.

The £7bn income in London’s private residential letting sector equated to a 6.4 per cent growth, up from £6.6bn in the previous year.

According to research, private landlords in London made an average of £20,000 in property income in 2017 – 18. This compared to the average nationwide income from privately rented property of £14,000.

The Mortgage Introducer notes how buy-to-let landlords are still set to benefit from round £16.7bn in tax relief, despite the government tightening landlord relief rules.

This positive outlook of London’s buy-to-let sector shows that, regardless of the raft of government changes to buy-to-let legislation and landlord tax relief, investing in property to let out in London remains a sensible, long-term investment.

As Stephen Ludlow, chairman a ludowthompson, which compiled the study, said:

“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.”

This optimistic outlook of buy-to-let in Britain follows similar positive news made earlier this year that the number of buy-to-let mortgage applications made through limited companies in the first quarter of 2018 were at an all-time high.

In an effort to retain landlords, buy-to-let mortgage lenders are also getting smarter, using deals designed to encourage them to stay rather than re-mortgaging with another lender.

This encouraging environment involving Britain’s buy-to-let sector paints a notably different picture to tranche of negative publicity the industry has attracted in recent years.

If you are thinking about joining the landlords in London who collectively earnt £7bn from their investments in 2017 – 2018, Auction House London’s property auctions could be the perfect place to find your first or next buy-to-let investment in the capital.

 

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