Landlords who sold their property last year made an average gain of almost £90,000, it has been revealed.
The research by Countrywide found that landlords typically owned the properties for 8.7 years, and made a gain of £86,651.
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London tops the league for average capital gains
It will surprise very few people that the research found gains were significantly larger in London and the south east of the country, where house prices tend to be higher.
These landlords made a gain of £253,981 if they sold their rental property in the capital in 2017. It is more than four times more than those outside the capital.
The findings also suggested that one in four landlords who sold their home in London did so for at least twice what they paid for it an average of 8.1 years ago.
Lancashire creeps into the top eight
Eight of the 10 places where landlords made the highest percentage gains were in London, with Maldon in Essex in third place and Pendle in Lancashire in seventh place being the only exceptions.
Those landlords in Brent made the highest gains, producing an average profit of £278,795, followed by Waltham Forest.
The City of Westminster is in fourth place, followed by Haringey and Lambeth.
The top 10 locations also included Islington, Kensington and Chelsea, and Southwark.
Slim pickings for landlords selling up in the north east
Landlords in the north east made the smallest gains at £23,874, which is 10 times less than a landlord in the capital.
Johnny Morris, research director at Countrywide, said: “House price growth has driven investor gains. Landlords selling in 2017 owned their homes for nearly nine years. In eight of those last nine years, house prices have risen. Even in areas where price growth has lagged behind, most landlords have made a profit from rising prices.”
Rents growing across the country
Landlords will be pleased to know that as well as capital gains, rental prices are on the up as well. The research also found that average rents reached £954 in Britain last month.
Rents in London grew faster than any other region for the third month in a row to stand at £1,686. It is 3.1 per cent above last year’s level. Across the UK. Scotland was the only region to see rents fall in February.
Mr Morris added: “Rents continued to grow. London continues to see the greatest falls in the stock of available homes to rent, on the back of reduced investor activity, this scarcity of supply is driving rental growth.”