Private Landlord Index

Compare how your buy-to-let property portfolio is performing against the market average
Introducing the Private Landlord Index
Monitor the performance of buy-to-let landlords

What is the Private Landlord Index?

The BondMason Private Landlord index models the performance of private buy-to-let landlords. 

The Private Landlord index is updated monthly and includes estimates based on publicly available information.

What's included?

The BondMason Private Landlord Index uses latest market data, including public house prices indices, average property yields, taxation and mortgage markets.

Private Landlord index vs FTSE
INVESTMENT ANALYSIS
Performance Data

Private Landlords are seeing their returns decline as tax changes and a slow down in the property market takes effect. The investment performance of listed corporate landlords has remained more resilient.

 

Corporate Listed Landlords vs Private Landlords

BRIX™ and BondMason Private Landlord Index data set is not available for commercial use. BRIX and the BondMason Private Landlord Index data must not be used in financial instruments traded on trading venues or via systematic internalisers in the EU; mortgage or consumer credit contracts, or investment funds.

Summary performance over three years (2016-2019)

House prices have grown by total of +6.0% over the past three years

Information based on the Nationwide house price index for the period from March 2016 to 2019.

The average private landlord has gained a total post-tax return of +16.9% over the last 3 years.

From 1 April 2016 to 1 April 2019 – source BondMason Private Landlord Index.

BRIX constituents have seen a total return of +37.7% over three years.

BRIX™ is the British Residential Property Investment Index, comprising Britain’s biggest listed residential property companies.

HOW IS THE PRIVATE LANDLORD INDEX CALCULATED
Making the Private Landlord Index

The BondMason Private Landlord Index is based on publicly available data sets to estimate the average performance summary of private buy-to-let landlords in the UK

House price performance

The BondMason Private Landlord Index starts with the latest house price data, from Nationwide, to establish the monthly house price movement. 

Taxation

The analysis assumes that landlords are higher-rate tax payers. Although it excludes the cost of stamp duty and impact of capital gains tax on valuation gains (which would reduce the index returns).

Mortgage and interest

The typical buy-to-let is assumed to have a 65% loan-to-value mortgage and a 3% p.a. rate of interest (including amortisation of legals fees and up-front mortgage fees). 

Buy-to-let gross yield

The Private Landlord index assumes a gross rental yield of 4.5% p.a.

 

Maintenance and costs

The index allows for annual maintenance costs and agent fees on the rental income.

 

Important information

This web page is intended for discussion purposes.  Without limitation, this web page does not constitute an offer, an invitation to offer or a recommendation to enter into any transaction. Nothing in this web page shall be construed as advice. Please contact your Financial Adviser for guidance. The information and opinions it contains have been compiled or arrived at from sources believed to be reliable at the time and are given in good faith, no representation is made as to their accuracy, completeness or correctness. Any opinion expressed, whether in general or both on the performance of individual securities and in a wider economic context, represents the views of BondMason at the time of preparation.  They are subject to change.  Past Performance is not a guide to future performance.  Residential property values are affected by factors such as interest rates, economic growth, fluctuations in property yields and tenant default.

BRIX™ and the BondMason Private Landlord Index may not be used for commercial purposes including as a reference for: a) determining the interest payable, or other sums due, under loan agreements or other contracts relating to investments b) determining the price at which investments may be bought or sold or the value of investments or c) measuring the performance of investments.

Persons seeking to place reliance on BRIX™ or the BondMason Private Landlord Index for any purpose whatsoever do so at their own risk and should be aware that various factors, including external factors beyond our control might necessitate material changes to BRIX™ or the BondMason Private Landlord Index. We reserve the right to vary our methodology and edit or discontinue BRIX™ or the BondMason Private Landlord Index at any time.

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