Landlords Who Abandon Btl Earn £80,000

Buy to let landlords who decide to abandon the market because of the government clampdown have been earning an average profit of £80,000 for each of the properties they sell.

Landlords in England and Wales last year made £79,770, research from real estate firm Hamptons International reveals.

The findings also highlight that landlords owned their property for just over nine and a half years on average. In London, those selling up gained an average of £248,120.

Investors with buy to let properties have been leaving the market since the impact of the 3% stamp duty surcharge was introduced in April 2016.

Landlords affected by mortgage interest tax relief

Landlords have also been affected by reductions to the mortgage interest tax relief and the wear and tear allowance.

There are big regional variations in the figures from Hamptons International, with London landlords topping the list and for those landlords in the South East, they earned in 2018 an average profit of £108,220.

That compares with a figure for Wales of £32,410 and for landlords in the North East who earned £11,810.

The figures highlight that around 120,000 landlords have left the market over the last three years and research published recently from the Residential Landlords' Association highlights that one in four landlords are looking to sell at least one property over the next 12 months.

Hamptons' head of research, Aneisha Beveridge, said: "Over the nine and a half years the average landlord owned a buy to let property, house price growth has driven their gain with prices rising by 30%."

Strong growth in older landlords investing

Meanwhile, it's been revealed that there's been a strong growth during 2018 in older buy to let investors entering the market.

Findings from Commercial Trust highlight that the number of mortgage application by those aged between 65 and 75, grew by 5.43% compared with the year before.

The only other demographic that saw an increase was a 0.03% rise in 25 to 34-year-olds applying for mortgages.

Buy to let mortgage activity

The firm's chief executive, Andrew Turner, said: "Our look at the buy to let mortgage activity for age demographics suggests that growing numbers of older people are recognising buy to let investment potential.

“Our data shows that many reaching retirement want to invest in bricks and mortar as a means to fund their retirement."

He added that investing in the rental market has the potential for delivering capital growth and rental yields for these investors.