Despite a difficult year for landlords battling with the Covid-19 lockdown,
the value of their BTL portfolios has risen by 8.6%.
According to research from real estate firm Barrows and Forrester, this equates to values rising by
£38,020 on average.
They have made the calculation from Government figures which reveal that
the average house cost £254,525 last December – that’s up from December
2019’s figure of £234,412.
And with a landlord owning 1.9 properties on average, means that a BTL
property portfolio is worth an average of £491,234.
The biggest price rise was seen for landlords in the South West where
portfolios grew by £49,000 over the past year to £530,890.
Most valuable landlord portfolios
However, the most valuable landlord portfolios are to be found in London
where landlords own, on average, two properties and prices rose by £34,000
to just under £1 million.
The firm’s managing director, James Forrester, said that the current stamp
duty holiday had helped to deliver a sharp rise in the value of buy to let
investment portfolios.
He added: “However, it seems that the government will, true to form, do
their best to spoil the party by increasing capital gains tax in next
month’s Budget.
“This is astounding given the changes already implemented to tax relief and
stamp duty tax thresholds and the impact it has had on landlord numbers.”
Mr Forrester says the government appears not to understand that the buy to
let sector is crucial to the UK’s rental market and having fewer landlords
means having fewer properties – and higher rents.
‘Investing in BTL property has been popular’
The managing director of Accommodation for Students, Simon
Thompson, said: “Investing in BTL property has been popular because it
delivers returns and here is evidence that landlords’ portfolios are doing
well.”
News that landlords have enjoyed portfolio price increases, is being
underlined with news that as many as 60% of landlords have taken advantage
of the stamp duty holiday.
According to Direct Line Business Insurance, three in five
landlords with more than one property have expanded their BTL portfolio
since July 2020 when the stamp duty holiday was introduced.
And for commercial landlords, they say 79% have taken advantage of the
holiday.
Landlords have been investing in properties
The research highlights that 43% of landlords have been investing in
properties that are outside of the UK’s major cities.
And of those that have done so, 82% of landlords are predicting that more
tenants will move out of cities with the growing popularity of remote
working leading the trend.
