Landlords cut portfolios by a quarter despite booming rents

Landlords with portfolios have cut the number of properties they own by as much as a quarter in England and Wales, according to quick sale firm the Open Property Group.

Reduction

In Yorkshire and Humber the average buy-to-let portfolio has fallen by 27% to nine properties.

And across the West Midlands, landlords hold on average 10.7 properties within their portfolio, a reduction of 19% year on year, with the South West also seeing an average reduction of 13% to 6.5 properties.

The average portfolio has also reduced across the North East, central London, East Midlands and East of England. However, there has been growth across outer London, the North West, South East and Wales.

Largest jump

Rental income per property has increased by an average of 8.8% over the last year, with investors across Yorkshire and the Humber seeing the largest jump at 30.9%.

However, while rents may be climbing, the figures also show profit margins are in decline, with the rental yield falling by 1% across the North West and central London regions.

We expect more investors will look to streamline their portfolios.”

Jason Harris-Cohen, CEO of Open Property Group, says: “Much has been made about the landlord exodus in recent times, and it’s fair to say that the severity of this trend has been largely exaggerated.

“However, the figures do suggest that while buy-to-let investors may not be exiting completely, they are reducing the size of their rental property portfolios,” he says.

“With a reduction in capital gains tax fast approaching, we expect more investors will look to streamline their portfolios given that the cost of exiting is set to reduce and who can blame them?”

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