Typical house prices increased by 8.6% over the course of 2020, meaning landlords saw their portfolios inflate in value by £38,820, research from Barrows and Forrester has found. Government figures show the average house price reached £254,525 in December 2020, up from £234,412 the same month the year before. With landlords typically owning 1.9 properties, this equates to the value of the property portfolios reaching £491,234.
James Forrester, managing director of Barrows and Forrester, said: “A sharp increase in property values brought on due to the current stamp duty holiday has caused a considerable jump in the value of buy-to-let investment portfolio up and down the nation.
“However, true to form, it seems as though the government will do their best to spoil the party with an increase in capital gains tax via next month’s budget.
“This is quite astounding given the string of changes already implemented to stamp duty tax thresholds and tax relief and the impact it has had on landlord numbers. “
The South West has seen the most considerable uplift in portfolio value, with an increase of £49,000 to £530,890 in the last year.
London is home to the most valuable landlord portfolios. With the average landlord owning two properties in the capital, the total value of their bricks and mortar investment sits just shy of £1m, having climbed by £34,000 in the last year.
Forrester added: “They don’t seem to understand that the buy-to-let sector is the backbone of the rental market and fewer landlords means fewer properties and even less affordable rents.
“Who will provide the much-needed rental accommodation if not the buy-to-let sector?
“Because it certainly won’t be the government, who have proved time and time again that they’re incapable of implementing any meaningful strategy where the delivery of property market stock is concerned.”
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