They are also seeing positive growth with the average monthly rent up 3.1% year on year to £861 per calendar month, according to the latest monthly lettings index from property lettings agency Countrywide.
The biggest increase was in Scotland where rents were up 9.6% year on year to £626 per calendar month, followed by Central London up 8.5% to £2,630 per calendar month.
The West Midlands and Yorkshire and Humberside saw a year on year decrease in average monthly rents, down 6.2% and 0.7% respectively.
The index also shows that the region where most landlords live near their rental properties is in the North East where 72% are within 10 miles. The number of landlords living within 25 miles of their properties is also highest in the North East at 83%, followed by the North West at 81%, East Midlands at 71% and London at 60% of landlords.
London also has the largest proportion of landlords living more than 100 miles away, with more than one in five landlords doing so, which is nearly twice the UK average.
In more rural areas such as Wales and the East of England, the low proportion of landlords living within 10 miles of their rental property is explained by a sparse population. Instead of investing in the same village or town, landlords choose to live further away whilst still remaining close enough to keep an eye on their asset.
The proportion of landlords living between 10 and 25 miles away in Wales and the East of England is the largest in the country.
The size of landlord’s portfolios tends to be small with only 6% of landlords owning more than a single rental property. Landlords in London have the smallest average rental portfolio size with only 4% of landlords owning more than a single property.
The report suggests that the cost of purchase and size of deposit required is a significant barrier to increasing portfolio size.
On a monthly basis the average rent was up 0.2% but seven out of 10 regions saw a month on month decrease with Yorkshire and Humber seeing the greatest decrease, down 6%, followed by the North East, down 3.1%.
Of those regions that saw an increase in average monthly rents, Central London and the South West saw the greatest month on month increase, up 4.1%.
And arrears are falling. They were down year on year in all regions apart from Scotland and the East of England which saw arrears up by 2.7% and 0.1% respectively. The North East saw the greatest year on year fall in arrears, down 1.8%.
‘Location is key to buy to let investment and as the findings show, landlords tend to purchase in areas they are knowledgeable of in terms of property prices, monthly rents and the local amenities that attract tenants to an area,’ said Nick Dunning, group commercial director at Countrywide.
‘Given 94% of UK landlords own a single rental property, many choose to take a hands on approach in regards to management, so favour being closer to their rental accommodation,’ he added.
He also pointed out that the latest English Housing Survey published by the Department of Communities and Local Government shows that in 2012/2013 the private rented sector overtook the social rented sector to become the second largest tenure in England after owner occupiers.
‘With the private rented sector continuing to grow, there is increasing need for more good quality rented accommodation. Current economic and property market conditions are encouraging for both current and potential investors,’ he explained.
‘Towns and cities always prove particularly popular with tenants due to their range of amenities and facilities. Locations with good road and rail links are also high on the list of desirables for tenants, making these types of places reliable for buy to let investment,’ said Dunning.
‘Growing average monthly rents across the UK shows the increasing attractiveness of regions outside London. London still remains a good place to buy property given exceptionally strong capital growth over the last 12 months but investors are venturing further afield for investment opportunities,’ he concluded.
