Landlords find profits are on the slide when selling up

The average landlord who sold a buy-to-let property last year made nearly £80,000 pre-tax profit – less than in previous years.

On average, the landlord had owned the property for 9.6 years.

While 85% of landlords selling up made a profit, 15% made a loss, according to Hamptons International.

Last year’s average pre-tax profits were £3,660 (4.4%) less than in 2017.

The biggest profits were made by landlords selling up in London, who saw pre-tax profits of £248,120. This was on average £24,000 less than in 2017.

The average pre-tax profit earned by a landlord who sold up fell in five out of ten regions between 2018 and 2017 as house price growth slowed.

Landlords who sold their buy-to-let in the north-east made the smallest average gain at £11,810, £4,270 less than in 2017.

There were four local authorities in England and Wales where landlords were more likely to sell their buy-to-let for less than they paid for it last year – South Tyneside, Sunderland, Darlington and Middlesbrough.

Landlords who do make a profit when they sell a buy-to-let property have to pay Capital Gains Tax. On an average profit of £80,000, this would likely be in the region of £19,000.

Hamptons estimates that since 2016 nearly 120,000 landlords have sold up and left the industry.

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  1. Woodentop

    Hamptons estimates that since 2016 nearly 120,000 landlords have sold up and left the industry.


    No surprise that government haven’t worked that out.

  2. Michael Gatsby

    The market is no longer how it used to be, A lot of new buyers have entered the market reducing the level of profit in properties. Its no wonder government have introduced so many new tax deductions to take advantage of.



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