Octane Capital’s research has found that rental income has increased by 19% over the last two years. The average total now stands at £15,144 a year.
Initial costs for investing in a buy-to-let property have fallen on average by 17%. The average start-up cost is now £9952, down from £12,037 in 2021-22.
However, the average operating cost has increased by 18%. According to this research, the leading cause behind this is likely rising mortgage rates.
Jonathan Samuels, chief executive of Octane Capital, said: “The average landlord has benefited from a very healthy level of rental income growth in recent years, and so while the level of capital appreciation seen on their property may have cooled, both aspects of their investment are still bringing healthy returns despite the instability of the current market landscape.
“Of course, higher running costs, most notably as a result of higher mortgage rates, have dampened the overall net return they’ve seen. But it’s fair to say that this reduction in net profits has been fairly marginal considering the current economic landscape and the storm of property market uncertainty that we’ve weathered in recent months.”
Learn More: Find out about stamp duty on investments and buy-to-let income tax by reading our latest guides.
