Landlord sales profits down
Private landlords selling property will typically make around £10,500 less than they would have done had they sold in 2022 according to a new analysis.
The data from letting and estate agents Hamptons suggests that so far this year, the average landlord in England and Wales has sold their buy-to-let for £94,800 more than they initially paid for the property, having owned it for an average of 11 years.
However this gain has shrunk by around 10% or £10,500 from a record £105,300 achieved last year and is similar to what landlords selling in 2016 typically achieved.
Hamptons has used Land Registry figures to make its calculations and the gains do not include tax and other charges.
It said average gains by buy-to-let landlords were down in every region, with the largest falls, in percentage terms, in the north. This, the report says, reflects a shift in the type of homes being sold, with smaller terraced houses and flats making up a higher proportion of buy-to-let sales, both of which have seen lower price growth.
The pressure on landlords caused by rising costs across the board has seen rents rise with the report estimating around 35,000 landlords are coming off fixed- rate mortgages each month, with many trying to balance the books by paying down debt and bringing rents in line with market rates.
You can read the full report here.
