Buy-to-let portfolios increasing
There is good news for letting agents, as research has revealed the average landlord's buy-to-let portfolio size has increased.
According to Paragon Mortgages, the typical number of properties owned by a landlord is currently 14.9, compared to 13.5 in the second quarter of this year.
John Heron, managing director, stated: "With the wider housing market gaining back some momentum, landlords are beginning to be more active in expanding their portfolios. However, our research does indicate that tenant demand is rising, and in order to meet this demand the private rented sector will need to see an increase in investment from landlords."
When Paragon's research started in 2002, the typical portfolio was nine properties. The average figure has grown noticeably this year, as between 2012 and 2013 it largely fluctuated between 12 and 13 homes.
Of the landlords surveyed, 15 per cent said they expect to expand their portfolio during the remainder of 2014. Close to two thirds (63 per cent) of this group are planning to purchase terraced houses, which is up from 55 per cent in the second quarter. More than one in four landlords (27 per cent) expect to buy semi-detached properties.
Paragon's findings coincide with research from Direct Line for Business that found landlords in England are now earning in excess of £32 billion per year through their properties.
Those based in London account for £14 billion (44 per cent) of this total, which is more than the north east, East Midlands, West Midlands, Yorkshire and East Anglia put together. The average property in inner-city London generates £19,596 per year or £1,633 per month.
In terms of individual cities, Leeds landlords have the second highest income at £565 million, it is followed by Birmingham (£521 million) and Manchester (£401 million).
Outside of London, Bournemouth is the nation's rental sector hotspot, with 30 per cent of properties in the town rented. The Isles of Scilly (29.7 per cent) and Brighton and Hove (29.6 per cent) are second and third respectively.
Buy letting agency software that works11-September-14General Lettings News