As a lender, we are always striving to assess landlord profiles, what they are looking for from a lender, what a ‘typical’ portfolio might look like and how various landlords are reacting to current market conditions. This is also incredibly useful information for intermediaries.
According to our latest research in conjunction with BVA BDRC for Q1 2021:
· A typical portfolio was worth around £1.2 million and generated an annual gross rental income of £54,000.
· It had 7.3 properties, down from 7.7 at the end of 2020.
· Based on an average Q1 portfolio size of 7.3 properties, the typical property value was £168,000 generating an annual income of around £7,397 per property, or £616 per calendar month.
Insight from Knight Knox suggested that the average age of British landlords has decreased, with 47% now aged under 40. The report went on to suggest that landlords are getting younger — and they’re making more money from rental income than their older counterparts. The average income per year was said to be highest for the very youngest landlords, with those aged between 18 and 30 generating an average £25,481 a year.
Read more of our latest research about what a typical portfolio looks like
This research also found that younger landlords are also more optimistic about the future. 54% of under 30s surveyed were ‘very confident’ about the market predictions for the next 12 months — compared to 15% of over 51s who said the same. 47% of under 30s plan to buy another house within the next year. However, while landlords are getting younger, the number of homes landlords own on average has dropped slightly, from 2.5 to 2.1.
It’s great to see the spotlight being shone on the younger end of landlord spectrum and its highly encouraging to see confidence levels rising and plans in place to purchase more properties. This helps to further demonstrate that the future of the BTL market continues to shine bright and is in safe hands.
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