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Landlords: how much profit could you make by selling your buy-to-let property?

With a raft of taxation and lending changes, there are signs that some landlords are leaving the buy-to-let sector. How much money do they currently stand to make by selling up? Here, we take a look at new research showing the regional differences in how much profit landlords make when they sell their buy-to-let properties.

  • If you’re a landlord and are considering consolidating your portfolio, call Which?

    Mortgage Advisers[1] on 0808 252 7987 for impartial, expert advice on your mortgage options.

Landlord buy-to-let profits

New research by the estate agency group Countrywide has found that landlords made an average of GBP86,851 when selling a rental property in 2017. These findings are based on landlords selling up after an average of 8.7 years of property ownership. While this figure might sound high, it’s less than the GBP92,886 made by the average owner-occupier, with capital gains tax bills eating into buy-to-let profits.

Regional variations

Perhaps unsurprisingly, London investors made the biggest profits, with more than a quarter (28%) doubling their initial investment and average profits clocking in at four times those in the rest of the UK.

This is in stark contrast to North East England, where a quarter of landlords didn’t make any profit at all.

Top local authorities for landlord profits

The picture varies only slightly when we look at local authorities rather than regions. Again, London dominates the list, but there are also places in the top 10 for Maldon in Essex, where landlords enjoy average profits of over GBP100,000, and Pendle in Lancashire (GBP19,525). The lowest percentage profits were found in Selby, North Yorkshire, where investors made GBP9,703 on average.

Rents in London rising most quickly

The average cost of a new let in Great Britain increased by 1.5% in February to GBP954 a month.

For the third month in a row, London rents increased at the fastest speed to reach GBP1,686. Scotland was the only region to see rents drop, with the monthly average now standing at GBP587.

Five changes for landlords in 2018

Landlords face continuing challenges that threaten to eat into their profits in 2018.

  1. Mortgage rates increasing: the Bank of England is likely to increase the base rate[2] soon, and the closure of the Term Funding and Funding for Lending[3] schemes could push up the cost of mortgages.
  2. Tighter lending regulations: portfolio landlords (those with four or more mortgaged properties) face stricter lending criteria[4]. Rather than supplying details of overall profits, landlords must now provide details of every property in their portfolio when applying for further finance.
  3. Mortgage interest tax relief cuts: from April landlords will only be able to offset 50% of their mortgage interest[5] when filing their tax return (currently 75%).

    This figure will steadily decrease until 2020, when it will be replaced by a tax credit worth 20% of mortgage interest.

  4. Landlord licensing: an increasing number of local councils are bringing in additional and selective licensing schemes, with landlords facing big fines if they don’t adhere to the rules. Check out our table to see if you need a licence[6].
  5. Energy efficiency regulations: from April, rented properties will need to have a minimum EPC rating of E[7] – with fines of up to GBP5,000 for those who breach the rules.

You can learn more about the challenges facing landlords in our full story on 12 things buy-to-let landlords need to know in 2018[8].

Your home may be repossessed if you do not keep up repayments on your mortgage. Which? Limited is an Introducer Appointed Representative of Which?

Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which?

Money Compare are trading names of Which?

Financial Services Limited.


  1. ^ Which?

    Mortgage Advisers (

  2. ^ base rate (
  3. ^ Term Funding and Funding for Lending (
  4. ^ stricter lending criteria (
  5. ^ 50% of their mortgage interest (
  6. ^ Check out our table to see if you need a licence (
  7. ^ minimum EPC rating of E (
  8. ^ 12 things buy-to-let landlords need to know in 2018 (

The cost to close Google’s pay gap was surprisingly cheap. The question is, why is this correction necessary?

Google revealed yesterday that it cost only £270,000 to close the gender and race pay gap among 89 percent of its workers for 2017. Breaking it down: Internal analysis found only 228 employees had statistically significant pay gaps. This means Google claims it had to spend only about £1,200 per worker affected by the gap to make things equal.

But: Google has been analyzing its pay gap since 2012. In 2017, the company outlined how it calculates each employee’s salary. The last factor before wages are final is an adjustment based on gender.

A widening gap: Last year, Google reported that it found no pay gap for 2016 and that no modification was needed. (This was around the same time the US Labor Department accused Google of “extreme” gender pay discrimination.) That information makes this year’s £270,000 change even more of a curiosity. The missing 11 percent: Google did not include 11 percent of its employees in the analysis because the small size or imbalanced nature of the job groups meant the data lacked “statistical rigor.” When this missing group includes higher-ups like vice presidents, it’s easy to suspect there might be more to this story. At least they’re not the worst offenders? As a comparison, Salesforce has to spend £3 million each year to eliminate its pay gap.

And it is likely that financial firms Goldman Sachs and HSBC will need to spend a lot more than Google to close their pay gaps of 55.5 percent and 59 percent, respectively.

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Source:Image credit:

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