Latest figures released by the high-end agency Savills been featured in The Times, shows why it does not make any financial sense to remain a private landlord.

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The agency prepared the data that The Times used in it is piece which compared profitability levels 10 years ago for landlords with today’s level.

It says: “The average sold price for a buy to let property was £161,404 in the first quarter of 2014, according to Savills, and an investor borrowing 70% of the purchase price would have needed a deposit of £48,421. They would have paid stamp duty at a rate of 1% - £1,614 - meaning an upfront cash outlay of £50,035.”

In comparison today the average price paid for a BTL property is £236,311 price and taking on a 70% mortgage an investor would need to pay a £70,893 deposit and the exorbitantly high £7,089 stamp duty at 3% of the purchase price, and the overall total a landlord would have to pay up front would be £77,892.

However, the data featured in The Times piece shows there has been little change in rental yields over the last ten years.

However the article fails to take into the comparison are the extra high additional payments landlords are forced to pay outside of the purchase times such as council licensing, higher letting agency costs as well the usual mandatory checks’ fees and measures regulated for private rental properties.

 In 2014 a landlord with a £112,983 mortgage on the inters-only loan market average of 3.85 % annual borrowing costs would be £4,345 however they would have at the very least an annual rental income of £10,072.

But today’s government has consistently punished private landlords by reducing business tax allowances which are permitted in other business sectors, so a landlord with the average mortgage - £165,418 – on a 5.48% interest only mortgage will be paying £9,058 a year as well as the standard management fees and repair costs of £2,934 and would end up with a paltry pre-tax profit of only £2,820.