Why landlords are set to become property millionaires

Why landlords are set to become property millionaires

On the surface, landlords appear to be having a tough time of it. In last year's Autumn Statement, it was announced that all purchasers of buy-to-let properties and second homes will have to pay an additional 3% in stamp duty from April 1.

And there are also a number of tax and wear and tear changes set to come into force over the next few years.

Although the landlord outlook may seem less rosy than before – there remains plenty of reasons why starting up or growing a property portfolio is a good idea.

In a new report from Santander Mortgages, it has been revealed that the number of UK properties worth £1 million or more is expected to triple between now and 2030.

Today, less than 500,000 UK homes are valued at £1 million or more, but this is set to rise to 1.6 million across the next 15 years.

Therefore, UK homeowners – and landlords in particular – look set to reap the benefits of this rapid growth.

Landlords can continue to earn a steady income from their rental properties and in 15 years' time, if they do decide to sell up, they may well have become a property millionaire in the meantime.

This news of a buoyant property market should remind landlords and investors that there is still plenty to shout about.

Unsurprisingly, London comes out on top when it comes to growth in the million pound property stakes. By 2030, it has been predicted that almost 25% of London’s total housing stock will be valued at £1 million or more.

The South East and the East of England come next, with both areas set to contain a high percentage of £1 million+ homes in the next 15 years. Both demand and house prices are increasing so rapidly in these areas as the commuter belt continues to widen.

The report also unearthed a stark geographical divide in UK locations. It found that less than 1% of properties in the North East, Yorkshire and Humber, North West, Scotland and the East Midlands will be valued at £1 million or more.