Most landlords only own one rental property
AFS Team·18 March 2014·4 min read
In addition, only 6% of landlords own more than one property, according to lettings firm Countrywide.
The research reveals that the area where most landlords live closest to their properties are in the north-east of England where 72% live within 10 miles. Extend that to 25 miles and the figure grows to 83% of landlords.
Landlords in London live furthest away
Tenants in London are also most likely to have their landlords living over 100 miles away, with more than 20% of landlords doing so, which is nearly double the UK average.
The growing number of accidental landlords, which are those people who inherit or have a property they used to live in opt not to sell and rent it out instead, are also unlikely to add to their portfolio.
The research from Countrywide reveals that only 6% of landlords own more than one property for rent and, surprisingly, it's landlords in London who have the smallest rental portfolio size with only 4% of landlords having more than one property to rent.
Analysts at Countrywide say the reason for the low number in London is because of the cost of buying property and the size of deposit needed.
Rental growth prospects for landlords
The research also shows that most landlords are optimistic about growth for rents this year with the average rental now being £861 a month.
Landlords in Scotland have seen the biggest rise year-on-year where rents grew by 9.6% to an average of £626 per month. The next biggest rent rise was seen by tenants in central London who now pay £2630 per month, a rise of 8.5% over last year.
The only areas where landlords have seen a decrease in rents were in the West Midlands and Yorkshire and Humberside where rents fell by 6.2% and 0.7% respectively.
And with the UK's economy picking up, landlords are around most of the country are saying that arrears are now falling except in Scotland and in the East of England where arrears rose by 2.7% and 0.1% respectively.
Location is the secret for a buy-to-let property
However, says Countrywide's commercial director Nick Dunning, the secret for any rental property is still its location and landlords tend to buy in areas they understand deeply for monthly rents being charged and property prices. They are also aware of the local amenities which will attract tenants,
He explained: “With 94% of landlords in the UK owning only one rental property, many of them opt to take a hands-on approach to its management and favour being close to it. “The private rental sector will continue to grow because there's a growing need for good quality accommodation to rent and the property market and economic conditions are encouraging for investors.”