Corporate landlords earning twice as much from buy-to-let as private owners
A new property index that tracks the fortunes of corporate landlords claims they are breathing new life into buy-to-let, while private landlords struggle.
The BRIX index, compiled by investment firm BondMason, found the average private landlord had a post-tax return of 16.9% over the past three years, but investors in corporate residential landlords have seen a return of 37.7%.
BondMason argues that corporate landlords are boosted by investment in the build to rent sector and the ability to offset debt costs against their tax bill – something now being denied to private landlords.
Stephen Findlay, chief executive of BondMason, said: “Historically the UK rental market has been dominated by private landlords, but that is now changing following the increased tax burden and new regulations which make it harder to generate a positive income each year.