Simply Business - Insurance for your business

Call Us0333 0146 683
Our opening hours
Knowledge centre

Where can landlords make the most when selling a property?

2-minute read

Where can landlords make the most when selling a property?
Mollie Millman

Mollie Millman

25 June 2020

While rental income may be a priority for many landlords, there’s also the potential capital gain to consider when weighing up the pros and cons of buy-to-let.

This varies significantly across the country, so it can be helpful to know where the best returns are available.

Research by estate agents Hamptons International suggests that the average capital gain was almost £80,000 in 2019.

What’s the average capital gain in the UK?

Hamptons International found that landlords sold their property last year for an average of £78,100 more than they paid for it – and that they owned their property for typically 9.1 years.

This is the equivalent of a gross gain of 42 per cent on their original investment in bricks and mortar.

Where’s the biggest capital gain in the UK?

However, Hamptons International said there are wide regional differences, with London leading the way.

It said the average gain in the capital was 20 times higher than that in the North East.

The average landlord in London made a gross gain of £253,580, compared to £11,710 in the North East.

The South East followed, with an average gross capital gain of £104,930, according to the research.

This isn’t surprising as house prices tend to be higher in the capital and the South East, but the returns in these areas are impressive nevertheless.

AreaAverage gross gain
South East£104,930
East£ 82,910
South West£55,900
West Midlands£36,150
East Midlands£34,790
North West£27,000
Yorkshire and the Humber£23,860
North East£11,710
England and Wales£78,100

Majority of landlords making a profit

The research also found that landlords in London were most likely to make a profit, with 97 per cent selling their property for more than they paid for it.

Landlords selling up in the North East were most likely to make a loss, with 45 per cent who sold up last year selling their property for less than they originally paid for it.

The average gross gain made by a landlord when selling up – at £78,100 in 2019 – fell for the second consecutive year, reaching the lowest level since 2015.

The £78,100 average capital gain is £2,400 less than the amount landlords sold for in 2018.

Percentage of landlords that made a gain

  • London – 97 per cent
  • South East – 96 per cent
  • East – 94 per cent
  • South West – 89 per cent
  • East Midlands – 84 per cent
  • West Midlands – 82 per cent
  • Wales – 74 per cent
  • North West – 71 per cent
  • Yorkshire and the Humber – 71 per cent
  • North East – 55 per cent

Landlords diversifying their returns

Aneisha Beveridge, head of research at Hamptons International, suggested that more than a third of landlords’ total return comes from capital growth rather than rental income in Britain.

She said: “Landlords in the South, where house prices are higher and historic price growth has been stronger, saw the greatest capital gains last year.

“In fact, the average London landlord gain was over 20 times that of a seller in the North East where landlords are more reliant on rental income. “

However, she added: “With house price growth expected to stay lower than in the past, more landlords are having to switch their focus to maximise rental income, rather than rely on capital growth.”

Would you consider average capital gains when looking for a new property for buy-to-let? Let us know in the comments below.

Get set with tailored landlord cover

Over 200,000 UK landlord policies, a 9/10 customer rating and claims handled by an award-winning team. Looking to switch or start a new policy? Run a quick landlord insurance quote today.

Start your quote

We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

Find this article useful? Spread the word.


People also liked

The government quietly announces new restrictions on repossessing properties.

14 August 20202-minute read

The government quietly announces new restrictions on repossessing properties

With the current eviction ban coming to an end, the government has announced new measures on regaining possession of a property. Will these…

Read more

Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter


Popular articlesBusiness resources from FarillioGeneral businessGuestInsuranceLandlordLandlord resources from FarillioLegal and financeMarketingNewsOpinionProperty maintenanceTradesmanCovid-19 business support hub


6th Floor99 Gresham StreetLondonEC2V 7NG

Sol House29 St Katherine's StreetNorthamptonNN1 2QZ

© Copyright 2022 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.