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
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
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