Phone Us

Capital appreciation behind growing returns for landlords

Rising landlords returns are being driven by monthly rental increases and higher capital appreciation.

Landlord Profit

Rising landlords returns are being driven by monthly rental increases and higher capital appreciation.

Data from the Countrywide Monthly Lettings Index has found that the total returns for landlords have increased by 45% over the past year, with the average return reaching 12.2% across the UK.


According to the report, rent now forms 50% of the returns whilst capital appreciation accounts for the other half. This marks a drastic shift from last year’s figures where rental income accounted for 90% of landlord returns.



Year-on-year, rents within the UK have risen by 4.6% but it is the increase in the average UK house price that has been adding value for landlords.



Of the 12.2% total, just 6.1% of this represents rental return, moving away from the trend of the past decade where the share has been consistently close to 75%.



This surge in the market has been mostly felt in London, with some larger UK cities such as Manchester also seeing rental growth.