Private landlords across the UK collectively earned £33.8bn from their buy-to-let investments in the year from 5 April 2017 to 2018, which is up 4.3% from £33.4bn in 2016/17.
According to the estate agency, landlords living in London earned the most amount of money, seeing £7bn in total revenue from their residential property investments in 2017/18, up 6.4% year-on-year.
Stephen Ludlow, chairman at ludlowthompson, said: “Landlords, living in London and across the UK, can be sure their buy-to-let properties remain a sensible, long-term investment.”
Despite government changes to available tax relief, ludlowthompson estimate that buy-to-let landlords are still expected to benefit from approximately £16.7bn in relief even once the changes are fully phased in by 2020, which would outperform other asset classes over the long-term, including government bonds, cash ISAs and shares.
Ludlow added: “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.
“The benefits of buy-to-let extend beyond landlords. The private rental sector plays a vital role in ensuring there is a healthy supply of high-quality rental accommodation that enables labour mobility. Renting is, in fact, part of the solution to the housing crisis.”
Landlords living in London see 6.4% growth in BTL income in a year compared to just 4.3% growth UK-wide average
Total value of property income
|
|
2015/16
|
2016/17
|
% change 1 year
|
UK
|
£33.4 bn
|
£34.8 bn
|
4.3%
|
London
|
£6.6 bn
|
£7.0 bn
|
6.4%
|
20% of the total income from property in the UK in the last year was made by landlords living in London
2016/17
|
|
Local Authority Name
|
Average property income per landlord (£)
|
Total value of property income (£m)
|
1
|
Kensington and Chelsea
|
£34,000
|
£306m
|
2
|
Westminster
|
£33,000
|
£295m
|
3
|
City of London
|
£32,000
|
£32m
|
4
|
Camden
|
£28,000
|
£364m
|
5
|
Barnet
|
£25,000
|
£585m
|
6
|
Hackney
|
£24,000
|
£181m
|
7
|
Epping Forest
|
£23,000
|
£9m
|
8
|
Hammersmith and Fulham
|
£23,000
|
£181m
|
9
|
Islington
|
£22,000
|
£66m
|
10
|
Brent
|
£21,000
|
£335m
|
11
|
Enfield
|
£21,000
|
£332m
|
12
|
Redbridge
|
£21,000
|
£369m
|
13
|
Elmbridge
|
£20,000
|
£11m
|
14
|
South Bucks
|
£20,000
|
£7m
|
15
|
Wandsworth
|
£19,000
|
£388m
|
16
|
Harrow
|
£19,000
|
£348m
|
17
|
Hertsmere
|
£19,000
|
£7m
|
18
|
Hounslow
|
£19,000
|
£151m
|
19
|
Lambeth
|
£19,000
|
£261m
|
20
|
Runnymede
|
£19,000
|
£4m
|
-
|
TOTAL LONDON
|
£20,000
|
£34.8m
|
-
|
TOTAL UK
|
£14,000
|
£7.0bn
|
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Or another way of putting this would be to say Landlords save Generation Rent, Councils and Government up to £1000 billions in investing in affordable housing by doing it for them - but that would be too much like giving Landlords due credit for doing a vital but thankless job!
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