The latest Monthly Letting Index for August, published by Countrywide, shows that while there has been a rise in supply of homes available to rent, the number of landlords has fallen over the last two years.
The data shows that:
- the average landlord portfolio size has reached a new high of 1.44 rented homes, up from 1.24 in 2010;
- since 2015 the number of landlords has fallen by 154,000 from 3.72 million to 3.56 million - despite 171,000 more rented homes. This means that there are 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.
The study reports that the size of the average landlord’s portfolio is the biggest since Countrywide’s records began in 2005, with the number of landlords owning 10 or more homes increasing by a third (33%) in the last decade.
Commenting on the figures, Johnny Morris, Research Director from 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.”
You can read the full set of data here.