Professional and portfolio landlords are taking over the private rented sector. Will this boost the industry’s standards?
Research by Hamptons International revealed the number of landlords has fallen, but the average landlord in Great Britain owns more properties with an average portfolio size of 1.93 buy-to-lets. This is the highest number since 2009. In 2019, 30% of landlords owned more than one buy-to-let, which is the highest percentage recorded to date.
Aneisha Beveridge, head of research at Hamptons International, commented: “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 index also showed landlords in the north-east of England have the largest portfolios with an average of 2.05 properties. Yorkshire & Humber followed closely behind with 2.03, and London landlords own 2.01 properties on average.
The sector continues to professionalise
Smaller-time and accidental landlords are making way for more professional and portfolio landlords. This has the potential to improve the private rented sector industry standards and provide higher quality properties and services to tenants.
With many regulation and tax changes coming into play for the private rented sector, it’s becoming more difficult for landlords to look at buy-to-let as only a hobby. The majority of landlords that are continuing in this sector are viewing their property investments as a full-time business.
Renters staying put for longer
Despite the number of landlords falling, less properties could potentially be coming to the open market because people are staying in their rental homes for longer. According to a recent survey by the government, the private rented sector is providing tenants with greater security in their homes as more renters look to stay put for longer.
With the sector continuing to professionalise, more portfolio and professional landlords are likely to be able to provide properties tailored more for what modern renters prioritise and to further improve industry standards. This has the potential to improve tenants’ rental experiences as more people are reliant on the private rented sector for a home.
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