The number of landlords in Britain is at a seven-year low, however the average landlord now owns more properties, the latest research from Hamptons International reveals.
According to Hamptons International’s Monthly Lettings Index, the number of landlords in the private rental sector is at a seven-year low, with the number of privately rented homes falling by 156,410 since 2017. In addition to this, Hamptons International estimates that there were 222,570 fewer landlords in the private rental sector in 2019 compared to 2017.
The reason for the fall in the number of landlords could be due to tax and regulatory changes, many of which were announced in 2016.
While the number of landlords has fallen, the average number of properties owned by a landlord has increased, and during 2019 was at its highest level since 2009. The average landlord in Britain owned 1.93 buy-to-let properties last year, compared to 2.02 properties owned by landlords in 2009. In addition to this, last year 30% of landlords owned more than one buy-to-let property, which was an increase from 21% in 2016.
Furthermore, statistics released by UK Finance this week found that there were 5,700 new buy-to-let home purchase mortgages completed in December 2019, which was a 3.6% increase from the same month the previous year. As well as this, there were 13,300 remortgages in the buy-to-let sector, an increase of 2.3% from December 2018.
Commenting on the research, Aneisha Beveridge, head of research at Hamptons International, said: “The number of landlords in the private rented sector has fallen to the lowest level in seven years. While 222,570 landlords have left the sector since 2017 due to tax and regulatory changes, those who have stayed tend to have bigger portfolios – a further sign that the sector is professionalising. The average landlord in Great Britain owned 1.93 properties last year, the highest level since 2009.
“Rents rose in every region across Great Britain in January to stand 3.6% higher than at the same time last year. The number of new homes purchased by landlords remains low, which is feeding through to fewer homes available to rent. This is particularly true in the South, where rents are rising the most.”
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