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Fewer landlords cash-in on rising rents despite expanding portfolios

The number of buy-to-let landlords in the UK has fallen by 154,000 since 2015 despite the volume of rented homes increasing by 171,000 over the corresponding period, as the average size of a landlord portfolio increases to a new recent high of 1.44 properties, fresh figures show.

Countrywide’s latest monthly letting index for August reveals that the number of landlords has fallen over the last two years, owed largely to negative changes introduced by the government, including higher stamp duty and the phasing out of mortgage tax relief, and yet there has been an increase in the supply of homes available to rent, from 4.9 million in 2015 to 5.1 million today.

The number of landlords owning just one buy-to-let property has fallen to 73%, down from 86% in 2010, while the number who own 10 or more properties has increased by 33% in the last decade.

Landlords based in the North East are likely to own the most rental properties (1.54), followed by landlords based in Yorkshire and the Humber (1.52) and London (1.51.

Across Great Britain average rents for new lets rose to £954pcm in August, up 1.6% on the same time last year.

Rents increased the most in the South West (4.7%), Scotland (2.8%) and East of England (2.5%), while London saw rents rise for the second consecutive month, up 1.8% year-on-year.

Johnny Morris, research director at Countrywide, 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 seem to be favouring more experienced, professional landlords.  Despite expanding portfolio sizes the sector is still characterised by those owning just one or two homes, 73% of landlords own one home.

“Rents rose in all regions across Great Britain to stand 1.6% up on the same time last year.  The number of landlord purchases continues to remain low which is feeding through into fewer homes on the rental market.

“Rents in London rose for the second consecutive month, driven by a pickup in rents in outer London.”

New lets (pcm)

Region

Average rent Aug-17

Average rent Aug-16

YoY

London

£1,716

£1,686

1.8%

East of England

£940

£917

2.5%

South East

£1,039

£1,025

1.3%

South West

£795

£760

4.7%

Midlands

£668

£664

0.5%

North

£638

£631

1.0%

Wales

£654

£649

0.8%

Scotland

£656

£638

2.8%

Great Britain

£954

£939

1.6%

Source: Countrywide

The number of homes and number of landlords in Great Britain

Fewer landlords cash-in on rising rents despite expanding portfolios

Source: Countrywide & DCLG

 

The number of rental homes and landlords in Great Britain

 

GB Rented Homes

GB Landlords

2005

2,566,032

1,906,511

2006

2,757,585

2,067,387

2007

2,893,394

2,180,574

2008

3,037,393

2,283,432

2009

3,364,160

2,623,264

2010

3,471,956

2,808,451

2011

3,797,290

3,063,077

2012

4,085,011

3,258,980

2013

4,336,161

3,380,556

2014

4,491,642

3,437,718

2015

4,940,781

3,715,669

2016

4,860,650

3,620,396

2017

5,111,709

3,561,498

Source: Countrywide & DCLG

 

Percentage of single property landlords and homes owned

 

Single property landlords

Homes per landlord

2005

86%

1.35

2006

85%

1.33

2007

84%

1.33

2008

84%

1.33

2009

85%

1.28

2010

86%

1.24

2011

85%

1.24

2012

84%

1.25

2013

82%

1.28

2014

81%

1.31

2015

80%

1.33

2016

79%

1.34

2017

73%

1.44

Source: Countrywide

Landlord purchases by region

Region

Landlords buying in the same region

Properties per landlord

London

71%

1.51

East of England

76%

1.39

South East England

77%

1.41

Yorkshire and the Humber

77%

1.52

Wales

79%

1.37

West Midlands

82%

1.45

North East England

82%

1.54

East Midlands

83%

1.49

South West England

85%

1.41

Scotland

88%

1.37

North West England

89%

1.41

GB

73%

1.44

Source: Countrywide

New lets (pcm)

Region

Average rent Aug-17

Average rent Aug-16

YoY

London

£1,716

£1,686

1.8%

East of England

£940

£917

2.5%

South East

£1,039

£1,025

1.3%

South West

£795

£760

4.7%

Midlands

£668

£664

0.5%

North

£638

£631

1.0%

Wales

£654

£649

0.8%

Scotland

£656

£638

2.8%

Great Britain

£954

£939

1.6%

Source: Countrywide

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