The average landlord who sold a rental property in 2017 made a profit of almost £87,000, new research from Countrywide reveals.
Sellers in London enjoyed the largest gains, receiving £253,981 more than they paid for the property on average. That’s four times more than more than those selling outside the capital.
One in four London landlords who sold a property did so for at least twice what they paid for it.
Owner occupiers enjoyed even bigger gains, making an average of £92,886 when selling up last year. Countrywide says this is because the average landlord who sold last year had owned the property for 8.7 years, rather than nine years for owner occupiers.
Eight of the ten areas where landlords made the largest percentage gains on their investments were found in London, with Brent taking top spot with an average profit of 135 per cent.
Only Maldon in Essex (118 per cent) and Pendle in Lancashire (109 per cent) were the exceptions.
Landlords in the North East made the smallest gains in both financial terms and on a percentage basis. The average landlord selling in the region enjoyed a profit of £23,874, more than ten times less than a landlord in the capital.
The lowest percentage profits were found in Selby in North Yorkshire at just 14 per cent.
The rate of annual rental growth slowed to 1.5 per cent in February according to Countrywide, down from 2.4 per cent the previous month. Despite this, Scotland was the only region to see rents fall in the month.
Countrywide research director Johnny Morris notes that landlords who sold up last year have owned their properties for an average of nine years, with house prices having risen in eight of those nine years.
He adds: “Even in areas where price growth has lagged behind most landlords have made a profit from rising prices.”