New research has revealed the winning UK regions where landlords are successfully growing their property portfolios and enjoying an increase in rental returns too, with two UK regions seeing an average rental return increase of 42 per cent!
The research has revealed that the average landlord has not only increased the size of their portfolio on an annual basis but is also enjoying an average of 18 per cent in their estimated total rental income.
The average UK buy-to-let investor’s property portfolio has grown 17 per cent from 6.9 properties in 2021 to 8.2 properties in 2022, according to researchers who examined data on current gross rental incomes, the average number of buy-to-let properties in a portfolio, and the total rental income per portfolio, as well as how these factors have changed over the past year.
At the same time, the average gross rental income of the average rental property has climbed by 0.5 per cent to £7,891, meaning the average 8.2-property buy-to-let investment portfolio now returns an annual rental income of £63,917 – an 18 per cent increase on 2021.
With almost double the average amount of properties in their portfolios, investors in Yorkshire and the Humber currently have the largest portfolios comprising 15.5 rentals, followed by those in the North East (10.8) and the East Midlands (10.5).
Buy-to-let investors in Yorkshire and the Humber have also seen one of the largest increases in portfolio size, up 50 per cent year-on-year; this is second only to the South West where the average buy-to-let portfolio has increased by 69 per cent.
While landlords in Central London have boosted their buy-to-let portfolio sizes by 43 per cent to 8.3 properties, investors in the Capital have also enjoyed the largest rental increases. In fact, the average buy-to-let portfolio in central London commands an estimated £93,890 in rental income per year – this is up 42 per cent annually.
Investors in the South West have also enjoyed a huge 42 per cent increase in their estimated rental incomes from their buy-to-let portfolios, followed by the North West (37%), Yorkshire and the Humber (35%) and the East Midlands 29 per cent.
Only two regions saw their average portfolio sizes reduce by -10 per cent in the east of England and -21per cent in the West Midlands.
Jack Godby, Sales and Marketing Director at specialist rental platform Ocasa, which conducted the report, commented: “It’s great to see that, despite the UK Government’s best efforts, the buy-to-let sector has really hit the ground running in 2022.
Like any area of the property sector, investment levels, property prices and rental values can vary drastically from one region to the next and this understandably has an impact on the size of a buy-to-let portfolio, the rent achieved per property and the overall return made.”
Have you grown your property portfolio this year?
Portfolio data sourced via Ocasa from BVA BDRC
