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Housing Market

Landlord portfolio size drops by 16% over past four years

Gloom among landlords has led some to sell properties, although tenant demand remains robust and 'booming' in many areas, says lender Paragon.

Nigel Lewis

landlord portfolios

The size of landlord portfolios has dropped from an average of nearly 15 properties four years ago to 12.6 as landlord confidence in the market drops, a new report has revealed.

Buy-to-let lender Paragon says the golden days of the post financial crisis boom for landlords are over and that landlords are “less optimistic about the future than at any time since 2010,” its Q3 2018 Highlights report reveals.

The lender’s panel of landlords were quizzed for the report, which shows that 11% are optimistic about the future, 21% expect to sell some of their properties and that 9% expect to buy additional ones.

Landlord portfolios

John Heron image landlord portfolios“Landlords operating in the buy-to-let sector have been subject to unprecedented tax and regulatory changes and they are understandably cautious about the future,” says John Heron, Director of Mortgages at Paragon (left).

“Many have already taken action to mitigate against the impact of these changes, including the sale of some of their properties and a reduction in gearing.

“Landlords continue to face significant headwinds as they prepare for the first-phase impact of the mortgage interest tax relief removal and potential economic uncertainty surrounding Brexit.”

But one thing landlords aren’t gloomy about is tenant demand. Paragon says 80% of the landlords it spoke to reported tenant demand stable, growing or booming and that the average void period has dipped to 2.9 weeks.

The lender also reveals that 87% of its panel have been landlords for 10 years or more, 44% for 20 years plus and that three quarters of them own three or more properties.

Read more about Paragon.

September 28, 2018

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