London landlords still appreciating the long-term benefits of property ownership

London landlords still appreciating the long-term benefits of property ownership

New data from Knight Frank has revealed that the number of London landlords who re-let their properties last year actually increased despite the various detrimental tax changes that the UK government has introduced.

In the year to August 2017, there has been a 10.1% rise in the number of re-let properties according to the data which looks at new tenancy agreements in the capital.

The figures have surprised a few analysts in light of the recent changes affecting landlords which includes the reduction of tax relief on mortgage interest, 3% stamp duty hike for buy-to-let investors and the removal of the wear-and-tear allowance.

However, according to Noel Flint, head of London residential sales at Knight Frank, one of the key reasons that landlords are not selling their properties is because they appreciate the longer-term benefits of property ownership. Noel said : “The reason we are not seeing many landlords come to the sales market is because they know there is nowhere else to put their money at the moment and they appreciate that property is a tangible asset that will always be income-producing.”

Adding to this, Tim Hyatt, head of Knight Frank’s lettings division, said : “Buy-to-let investors typically hold properties for an average of 16 years and most professional investors will ensure their portfolio is able to weather such storms.”

Whilst yields on investments such as cash or government bonds continue to remain low, property continues to deliver the best returns.