Landlords selling up in England and Wales make huge profits

published 15 May 2019

Making a healthy rental return on their portfolio of buy-to-let properties is a key priority for many landlords. And now new research has revealed that some landlords are also cashing in by selling the homes they've been renting for almost decade for a significant profit.

Figures from the Hamptons International Monthly Lettings Index (April 2019) showed that landlords in England and Wales who sold their buy-to-let homes in 2018 made an average of £79,770 more than they paid for them (before tax) after owning the property for an average of 9.6 years.

However, further data revealed that some landlords made even more from their rental investments over a similar period. Landlords in the London Borough of Hackney made an average 98 per cent gain after just 8.9 years of ownership equating to a gain of £289,650. Similarly, landlords in South Bucks also made an average 98 per cent gain on their buy-to-let properties. This time it was after an average 9.3 years of ownership, and the average gain equated to £278,310.

living room with white curtain and blue couch

Impressively, all of the top 10 local authorities with highest average landlord seller gain (before tax) pushed past the 90 per cent mark, with the full ranking as follows:

Swipe to scroll horizontally

Local Authority	Region	Average gain £	% making a gain	Average ownership
KENSINGTON AND CHELSEA	London	£ 1,072,880	91 per cent	10.6
CITY OF WESTMINSTER	London	£ 557,380	91 per cent	11.1
CAMDEN	London	£ 433,560	95 per cent	9.3
HAMMERSMITH AND FULHAM	London	£ 432,150	96 per cent	10.1
RICHMOND UPON THAMES	London	£ 325,100	96 per cent	10.1
WANDSWORTH	London	£ 317,820	96 per cent	10.0
ISLINGTON	London	£ 296,300	96 per cent	9.3
HACKNEY	London	£ 289,650	98 per cent	8.9
HARINGEY	London	£ 278,410	95 per cent	9.3
SOUTH BUCKS	South East	£ 278,310	98 per cent	9.3

kitchen with green cabinets and washbasin

Commenting Aneisha Beveridge, Head of Research at Hamptons International, said:

'The average landlord who sold their buy-to-let last year did so for nearly £80,000 more than they paid for it. Over the 9.6 years that the average landlord has owned their buy-to-let, house price growth has driven their gains, with prices having risen around 30% over the period. But given lower expected future house price growth and tighter mortgage regulation, more investors are shifting their focus from capital gains to yields.

'Rental growth accelerated to 2.1 per cent in Great Britain last month, the highest level since January 2018. This was driven by a 3.9 per cent year-on-year increase in London rents.'

Has selling your buy-to-let property proved profitable for you?