The number of landlords in Britain has fallen over the last two years despite a rise in supply of homes available to rent and despite existing landlords expanding their portfolios, new research shows.
The fall in the number of landlords comes at a time when rents are rising, up 1.6% year on year, according to the latest monthly lettings index from Countrywide, and Greater London seeing growth for a second month in a row.
The research estimates that the number of landlords peaked at 3.72 million in 2015 when there were some 171,000 fewer rented homes than today. In 2017 there are just over 154,000 fewer landlords, 3.56 million in total, but the number of rented homes has increased from 4.9 million in 2015 to 5.1 million today.
Today fewer landlords and more rental properties means the size of the average landlord’s portfolio is the biggest since Countrywide’s records began in 2005. The average landlord owned 1.44 rented homes in 2017, up from 1.33 in 2015 and a low of 1.24 in 2010.
In 2017, 73% of landlords owned one buy to let property, down from 86% in 2010 and the number of landlords who own 10 or more homes has risen by 33% in the last decade.
The research also shows that landlords based in the North East are likely to own the most rental properties at 1.54, followed by landlords based in Yorkshire and the Humber at 1.52 and London at 1.51. While London based landlords are more than twice as likely to have a portfolio of 10 or more homes compared to landlords in any other region.
Across the country average rents for new lets rose to £954 per calendar month in August, up 1.6% on the same time last year. Rents increased the most in the South West with a rise of 4.7% while in Scotland they increased by 2.8%, in the East of England by 2.5% and in London rents grew for the second consecutive month, up 1.8% year on year.
‘The increasing number of rented homes is being driven by landlords expanding their portfolios rather than new landlords entering the market,’ said Johnny Morris, research director at Countrywide.
‘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,’ he pointed out.
‘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,’ he added.
