Rental sector grows as Landlords expand portfolios

  • The average landlord portfolio size reaches a new high of 1.44 rented homes, up from 1.24 in 2010 (table 2)
  • But since 2015 the number of landlords has fallen by 154,000 despite 171,000 more rented homes. (table 1).  Meaning less landlords owning more homes.
  • Rents in Great Britain rose 1.6% year-on-year as rents in Greater London grew for the second consecutive month. (table 4)

Countrywide’s Monthly Letting Index for August, published today shows that the number of landlords has fallen over the last two years despite a rise in supply of homes available to rent.  Countrywide 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. (table 1). 

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 (table 2).  In 2017, 73% of landlords owned one buy-to-let property, down from 86% in 2010 (table 2).  The number of landlords who own 10 or more homes has risen by a third (33%) in the last decade (2007 to 2017).

In 2017 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).  (table 3).  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 Great Britain average rents for new lets rose to £954 pcm in August, up 1.6% on the same time last year (table 4).  Rents increased the most in the South West (4.7%), Scotland (2.8%) and East of England (2.5%) while London rents grew for the second consecutive month, up 1.8% year-on-year. (table 4).

Commenting on the analysis, 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.”

Chart 1 – The number of homes and number of landlords in Great Britain

Watford Observer: Chart 1


Source: Countrywide & DCLG

Table 1 – 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

Table 2 – 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

Table 3 – 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

Table 4 – 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 Countrywide Lettings Index for September 2017 will be release on Friday 13 October 2017, embargoed for 00.01 hours Monday 16 October 2017