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Landlords Earned £112Bn Last Year

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The total value of their assets is up 11 per cent on the year to £990.7bn – just shy of £1 trillion. London’s private rental sector is worth £406.5bn, up £50.7bn on the year. As a result, the UK’s rental property market is worth 43 per cent of the value of the stock market, up from 12 per cent 15 years ago. The increase comes as house prices rose 7.5 per cent on the year, and more investors put money into the sector. Between capital gains and rental income, the average property earned its owner £24,221 in the last year. The average rent increased by 3.9 per cent to £832 per month. But as the number of renting households has also increased, the total amount of rent paid in the year rose 7.2 per cent to £46.8bn. London accounts for 36.3 per cent of that rental bill, with tenants in the capital paying a total of £17bn.

“Long-term price inflation is not in danger, given the gaping chasm between growing demand for housing and the number of houses being built each year,” http://www.cityam.com/216695/1-trillion-pot-uk-landlords-wealth-grows

It's not hard to see the attraction of the BTL.

Smart tips for beating the Market:

1 buy property

2 rent it out

3 sit and wait for money

4 repeat step one

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Rental income is worth almost £4bn a month nationwide as the sector’s popularity for investment continues to increase, locking out first-time buyers. As would-be first-time buyers struggle to get a toehold on the housing ladder amid rising property prices and tougher mortgage-lending criteria, investors continue to pile in to the rental market. http://www.theguardian.com/money/2015/may/28/booming-buy-to-let-112bn-landlords

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The problem is many of the properties that traditionally was purchased by first time buyers is now in the hands of landlords....in a market where the population is growing faster than the housing stock available to new first time buyers, therefore they are having to rent what in the past on equivalent salary they could buy.

Not only that the larger HMO style property is encouraging high density overcrowding living conditions....often the property is not correctly maintained or cared for bringing down the area so buyers will avoid buying there.....hope we do not go back to the seedy days of Rackmanisum....much of what is happening is not easy to notice but it is there and is real, can only deteriorise unless a brake is applied fairy sharply.... Slippery slope.

Edited by winkie

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I posted a link to the Kent Reliance report in another thread yesterday.

It's a totally balanced analysis of the BTL market without any hint whatsoever of VI ramping.

Some example quotes:

  • Average landlord could expect to double their portfolio within ten years, purely by using growing equity to fund new purchases.
  • Over a twenty year period, single property investment is forecast to see equity grow by £376,876. Doubling portfolio after ten years increases this to £616,224.
  • Even if buy to let property price growth falls back to around 5.4%, a conservative estimate by historic standards, a landlord investing today could expect capital gains of more than £375,000 per property over a 20 year horizon.
  • Despite the decline in total returns across the PRS, the average buy to let property generated a gross annual return of £24,221 in the past twelve months, just £1,000 less than the average salary in Great Britain (£25,198).

Summary: Fill yer boots. Work is for suckers.

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Don't worry, HMRC and their super database investigations were all over it in 13/14 reclaiming an massive extra £136m, for total of ~£1.5bn CGT from non financial assets. It's completely reasonable that in 12/13 about 150k individuals incurred any CGT liability vs. everybody working for a living and paying for the gains.

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“Long-term price inflation is not in danger, given the gaping chasm between growing demand for housing and the number of houses being built each year,

I find it rather touching that Cityam (or whichever cheerleader) cant contemplate people ever leaving London.

London accounts for 36.3 per cent of that rental bill, with tenants in the capital paying a total of £17bn.
Edited by R K

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I posted a link to the Kent Reliance report in another thread yesterday.

It's a totally balanced analysis of the BTL market without any hint whatsoever of VI ramping.

Some example quotes:

  • Average landlord could expect to double their portfolio within ten years, purely by using growing equity to fund new purchases.
  • Over a twenty year period, single property investment is forecast to see equity grow by £376,876. Doubling portfolio after ten years increases this to £616,224.
  • Even if buy to let property price growth falls back to around 5.4%, a conservative estimate by historic standards, a landlord investing today could expect capital gains of more than £375,000 per property over a 20 year horizon.
  • Despite the decline in total returns across the PRS, the average buy to let property generated a gross annual return of £24,221 in the past twelve months, just £1,000 less than the average salary in Great Britain (£25,198).
Summary: Fill yer boots. Work is for suckers.

Don't worry they're just reeling in the last few suckers before the crash!

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