Private landlords in London earned £7bn from their residential property investments in the year from 5 April 2017 to 2018, making up 20% of the UK’s buy-to-let income, estate agent ludlowthompson has found.
Landlords resident in London saw 6.4% growth in income from their property in the last year, up from £6.6bn year-on-year. This compares to the UK-wide average of 4.3% growth in property income, to £34.8bn in 2017/18 up from £33.4bn in 2016/17.
Stephen Ludlow, chairman at ludlowthompson, said: “Landlords, living in London and across the UK, can be sure their buy-to-let properties remain a sensible, long-term investment.
“Whilst house prices are not a one-way bet, they have been far less volatile than other asset classes like shares.
“When you see the share price of one of the UK’s biggest banks fall 9% in a day, based on no corporate news at all, you can see why investors prefer the relative stability of residential property.
“The benefits of buy-to-let extend beyond landlords. The private rental sector plays a vital role in ensuring there is a healthy supply of high-quality rental accommodation that enables labour mobility. Renting is, in fact, part of the solution to the housing crisis.”
Despite government changes to available tax relief, buy-to-let landlords are still set to benefit from approximately £16.7bn in relief even once the changes are fully phased in by 2020.
ludlowthompson added that private residential landlords living in London made on average of £20,000 in property income in the last year, while UK-wide, landlords made an average £14,000.
Some 16 of the Top 20 UK hotspots for private landlords with the highest average amount of annual property income per capita were in London. Private landlords resident in Hackney, for example, made on average £24,000 in the last year from property.