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Landlord Confidence in Capital Gains Almost Trebles

January 20, 2015 | Landlord News  

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Landlord confidence in capital gains has skyrocketed in the last two years, according to the National Landlords Association’s (NLA) Quarterly Landlord Panel research – a survey of over 1,000 UK landlords.

Confidence in capital gains rose from 18% to 52% in just two years, with a colossal sevenfold increase in the UK’s financial markets over the same period (rising from 5% to 37%).

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The findings come just a week after the Financial Times revealed that UK landlords made £177 billion over the last five years from rising house prices alone. The total value of privately rented property grew by 57% since the financial crisis, passing £1 trillion.

But the NLA findings also show that nearly a third (32%) of landlords could not be certain of meeting their mortgage repayments if there were a rise in interest rates in the near future.

Despite confidence in capital gains, as well as the amazing growth figures, the NLA strongly warns against relying on capital gains as a primary investment strategy. Carolyn Uphill, Chairman of the NLA, said: “With house prices levelling off and inevitable rises to interest rates as the economy improves, anyone considering investing in buy-to-let should think carefully before taking the plunge. This means planning for the long term and looking to sustainable yields, not hoping for a windfall in capital appreciation.”

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