Profit from Property Investments Reaches £86,651 for Average Landlord

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The average landlord who sold their investment property in England and Wales during 2017 made £86,651 in profit having owned their home for an average of 8.7 years.

Research from estate agent Countrywide found that landlords in London came out on top, gaining an average of £253,981 in total when selling their rental property. This is over four times more than those selling outside London. 28 per cent of those who sold their home in London generally received twice what they paid for it. This is also over the slightly shorter period of 8.1 years.

Landlords who sold in London and the South East made the most profit on average. This is due to higher house price growth in these regions. The key local authorities within which landlords selling made the highest percentage gains were Brent, at a sizeable 135 per cent, Waltham Forest at 120 per cent and Maldon in Essex and Westminster in joint third at 118 per cent.

Eight out of the 10 highest performing areas were located in London. Pendle, situated in in Lancashire was the only region outside of the South East. Landlords selling properties in Pendle made a premium of 109 per cent.

Landlords in the North East made the least profit with an average of £23,874. This equates to over 10 times less than London. Landlords selling properties in Selby in North Yorkshire made the lowest profit at 14 per cent. However, they still gained an average of £9,703.

Whilst it was found that homeowners made slightly more when selling their properties than landlords, this was likely due to the fact that the research covered nine years since homeowners purchased their properties in comparison to 8.7 for landlords. 

Research director at Countrywide, Johnny Morris, said: ‘House price growth has driven investor gains. Landlords selling in 2017 owned their homes for nearly nine years. In eight of those past nine years, house prices have risen. Even in areas where price growth has lagged behind, most landlords have made a profit from rising prices.’