How to profit from property investment
Average rents in London fell for the first time in July for more than six years, according to one property index, but this still leaves landlords in the capital collecting an average of £1280 per month from tenants, or £15,360 per year.
However, two investors who were said to once own the UK’s largest portfolio of buy-to-let properties claim the heyday of the amateur landlord is over.
Fergus and Judith Wilson, who have sold around 400 of the 900 properties they own in Kent over the past 12 months, say the landscape for amateur property investors has changed over the past two decades.
Fergus Wilson, who with his wife owned a property portfolio worth an estimated £250 million, told Money Marketing that rises in stamp duty and income tax, tighter mortgage lending criteria and the dramatic increase in property values means “the day of the amateur landlord is over”.
The Wilsons, who have sold their portfolio to overseas investors and tenants, explain that buy-to-let investors not only need to pay more stamp duty when they buy a flat or house to rent out, but also end up parting with more income tax on the money the property generates.
“House prices have continued to rise over the past year,” they acknowledge. “But this is forcing rental yields on new properties lower.
“At the same time, house price inflation is now slowing, suggesting that capital gains for property investors may be harder to come by in the aftermath of the Brexit vote.”
However, demand for rental property in London continues to rise. London will become a city of renters, with just 40% owning their own home in 2025, according to research from professional services firm PwC.
This is a reversal of the situation in 2000, when 60% of Londoners owned a house, either outright or with a mortgage.
If you have a buy-to-let property or have just become an accidental landlord, Assetgrove can take all of the hassle out of running a property portfolio of any size.
Our Guaranteed Rent scheme works by giving landlords a fixed monthly rental income while we get on with the often time-consuming business of managing all the day-to-day tasks of running a rental property, such as inspections, lettings, viewings, maintenance work and legal issues.
We offer a completely personal and professional service that prioritises you and your property, treating each home we manage as if it were our own.
Assetgrove can often let a property within 48 hours of taking it on. And if any repairs need doing to bring the rental home up to the standards demanded by the ever-increasing amount of legislation governing the private rented sector, our in-house maintenance team can carry out the work with no payments up front.
For more information, contact Assetgrove today.