Landlord Sell-Off slows to 7 Year Low

Landlord Sell-Off slows to 7 Year Low

Landlord Sell Off

Last year 131,900 properties were sold by landlords in Great Britain, the smallest sell-off since 2013 (105,830).

Research from Hamptons reveals that the average landlord who sold up last year in England & Wales sold their buy-to-let for £82,450 or 42% more than they paid for it, having owned the property for 9.1 years on average.

The average landlord gross gain increased by £3,390 or 4% to £82k compared to 2019 (£79,060), marking the first annual rise in more than five years.

London landlords made the biggest gains. The average London landlord sold their buy-to-let for £302,200 or 71% more than they originally paid for it, having owned the property for 9.8 years on average.

2020 reversed the fall in a London landlord’s gross profit. Despite the increase, typically landlords who sold in the capital last year made a smaller gross profit than those who sold in 2016 when they made an average gain of £364,960. 2016 marked the high point for landlord profit when many investors, having bought at the bottom of the market following the 2008 financial crash, decided to sell up

Commenting Aneisha Beveridge, Head of Research at Hamptons, said: “Last year, the number of homes sold by landlords reached a seven-year low. A pause in the housing market during the first Covid-induced lockdown, which suppressed overall transactions, combined with an eviction ban throughout the remainder of 2020, limited the opportunity for landlords to sell up. “Landlord sales have been relatively high over the last few years due to tax and regulatory changes that have reduced the profitability for some investors. But given tax relief on mortgage interest will be fully phased out from the 20/21 tax year, it seems as though most landlords who would be hit hardest by these changes have already left the sector.”

View the full report from Hamptons.

To find out more about renting or letting a property through Watsons please ring our Lettings Department on 01603 751555 or email lettings@watsons-property.co.uk.

Mark Francis Pearce

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