Capital appreciation worth £177bn to landlords

Fri 20 Feb 2015

Growth

There are many advantages of being a landlord, but perhaps none are as lucrative as capital appreciation.

House prices are on the rise in many parts of the UK, meaning all homeowners are benefiting from increasing capital growth.

For those who are letting out a property this means they benefit not only from rental income, but also from the fact their asset is becoming steadily more valuable.

Indeed, landlords have made a combined profit of £177 billion thanks to capital growth over the last five years alone, according to a recent report by the Financial Times.

As the nation’s financial position has bounced back from the credit crunch and economic confidence has improved, house prices have risen at a rapid rate. This has allowed many homeowners to move up the ladder, and buy-to-let landlords are in a strong position to remortgage, sell and reinvest or simply continue enjoying a substantial return on their investment.

Yields of five per cent or more are not uncommon across the south-east, but it is capital appreciation where landlords stand to gain even greater sums.

While house prices offer steady potential for capital growth, at a time when many other forms of investment are currently delivering only a minimal return, it is no wonder that more people are turning to buy-to-let properties as a way to make their money work for them.

If you would like expert advice and local insight into which properties are most likely to deliver the return you are looking for as a landlord, or you would like to let out an existing property, please contact your local branch.

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