Landlords who sold in 2017 made £86,651

12 March 2018

The average landlord who sold their rental property in England and Wales in 2017 made a gain of £86,651, having owned their home for an average of 8.7 years, according to new lettings market research.

But landlords in the capital were the big winners, gaining £253,981 on average – over four times more than those selling outside London, estate agent Countrywide has revealed. One in four landlords (28%) who sold their home in London typically received twice what they paid for it over a slightly shorter average time frame of 8.1 years.

Landlords made slightly less money from property than owner-occupiers, who gained £92,886, on average, selling up in 2017. However, this is likely to be because the research covered nine years since owner-occupiers bought their properties, as opposed to 8.7 years for landlords.

Landlords who sold in London and the South East generally made the most profit due to higher house price growth in these regions. The top three local authorities where landlords selling made the highest percentage gains were Brent (135%), Waltham Forest (120%), with Maldon in Essex and Westminster joint third (118%).

Eight out of the 10 top-performing areas were in London, with Pendle in Lancashire (109%) the only region outside the South East.

Landlords in the North East made the least profit with an average of £23,874 – over 10 times less than in London. Landlords selling in Selby in North Yorkshire made the lowest profit of 14%, although they still gained an average of £9,703.

See the table below for the top 10 local authorities where landlords selling made the biggest profit in 2017.  

Top 10 local authorities where landlords selling made the biggest profit (%)
Local AuthorityAverage profit (%)Average profit (£)
Waltham Forest120%£192,840
City of Westminster118%£494,892
Haringey 116%£292,017
Kensington & Chelsea103%£696,665

Source: Countrywide, March 2018  

Johnny Morris, research director at Countrywide, says: “House price growth has driven investor gains. Landlords selling in 2017 owned their homes for nearly nine years. In eight of those past nine years, house prices have risen. Even in areas where price growth has lagged behind, most landlords have made a profit from rising prices.”

See the table below for the average landlord gain by region in 2017.

Average 2017 landlord seller gain
RegionAverage profit (purchase price - sale price)Proportion of sellers making a profitProportion of sellers doubling their money
London£253,981 96%28%
South East£108,073 97%15%
East£84,265 94%13%
South West£57,249 91%11%
West Midlands£40,381 85%11%
East Midlands£38,776 87%12%
North West£34,519 80%12%
Yorkshire and the Humber£32,671 78%11%
Wales£30,938 79%13%
North East£23,874 75%9%
England & Wales£86,651 88%14%

Source: Countrywide, March 2018  

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