27th
Sep 2017
According to research from a national estate and lettings agents' chain, landlord numbers has fallen since 2015 although there has been an increase in availability for properties to be rented out, this suggests that typical investors in the sector have a larger portfolio of properties than two years ago.
The research estimated that in 2015 numbers of landlords was at its highest of 3.72 million, at that time there was around 171,000 fewer homes being rented out than at the present day.
The data claims that for this year there around 3.56 million landlords which has fallen by 154,000 since two years ago, however the numbers of private rented properties has risen from 4.9 million in 2015 to 5.1 million presently.
The figures show that as there less landlords nowadays and more rented homes therefore the size of the average portfolio must have increased, which is the highest since the research was first undertaken in 2005.
In 2015 landlords on average owned 1.33 rented properties which have risen to 1.44 rented homes in 2017.
In 2017, 73% of landlords own one rental property which has fallen by 13% in 2010 when it stood at 86%, the number of landlords who have portfolios of 10 + properties has increased by at least a third in the last ten years.
Research Director of the agents, Johnny Morris, said: “The increasing number of rented homes is being driven by landlords expanding their portfolios rather than new landlords entering the market. Increasing regulation in the sector accompanied by recent changes to income tax relief on mortgage interest payments seems to be favouring more experienced, professional landlords.”
He also pointed out that in spite of portfolios apparently being increased, the majority of landlords (73%) in the sector own one or two properties for letting.
From the research in 2017 North East landlords own the most rental homes with an average of 1.54 properties, in second place are landlords in Yorkshire and the Humber with 1.52 followed by London landlords with an average of 1.51 properties.
In spite of the figures above it seems that landlords who have properties in London have twice the likelihood of owning 10 or more properties than those who rent out homes in any other part of the UK.
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