Buy-to-let investors in the UK have suffered a dismal few years. The government's determination to make the sector less appealing to investors seems to have worked.
Last year, 85% of landlords sold their property for more than they paid for it, with 15% making a loss.As you might expect, those selling property in London made a profit almost three times the national average, selling for a £248,120 profit. However, landlords made more money in 2017, selling for a £83,430 profit, with London landlords making £272,120. It's also important to take into account the potential opportunity cost of leaving the sector.
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Until a few years ago, buy-to-let was a fairly reliable source of income and capital growth for many. The government was concerned that landlords were pushing up prices beyond the reach of first-time buyers. While its clampdown has cooled the buy-to-let frenzy, it's a shame that the Help to Buy programme is having the same effect.
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