As government tax and regulation bites, landlords with smaller portfolios are leaving while those who remain tend to have larger portfolios, says Hamptons International.

The number of landlords has decreased by 8% since 2017 to 2.66 million, latest research from estate agency Hamptons International reveals.

This is the lowest number of private landlords in the market for over seven years and also clear evidence that the government’s efforts to chase smaller landlords out of the market is working.
Hamptons says the average size of a portfolio is rising as tax and regulatory burdens have caused some accidental and smaller landlords to leave the sector.

The figures show that 30% of all landlords now own more than one property, the highest percentage on record.
Landlords with the largest portfolios are in the North East, Yorkshire and the Humber and London, and those in Wales and Scotland have smaller than average portfolios.

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Bigger portfolios
“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,” says Aneisha Beveridge, Head of Research at Hamptons International.
“An average landlord in Great Britain owned 1.93 properties last year, the highest level since 2009.”
The number of landlords in the UK increased dramatically after the 2007/8 financial crash as rock bottom interest rates persuaded many people to invest in property rather than savings accounts, rising from 1.4 million in 2007 to nearly 2.9 million by 2017.
Despite the increases in portfolio size tracked by Hamptons, the exit of landlords is sucking stock out of the market.
In 2017 there were 5.29 million private rented homes but last year there were just 5.13 million.

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2 COMMENTS

  1. I own five rental properties a mix of 2 bed houses and 2 bed flats. Costly and pointless regulation over the last few years including Local authority blanket licensing and Legionella risk assessments have added additional cost burdens along with the potential of removing Section 21 is turning the sector into a NIL sum game. By the time all of the costs are accounted for and taxes paid there is little or no incentive for me to remain in the sector.

    Investors in any type of business activity have to balance risk against reward and when the government are tipping the scales in such a draconian way there will be one result only EXODUS.
    Over the last 40 years the private sector have built the houses and created the rental market to accommodate a rise in population since 1981 of 10.74 million (according to the ONS)

    The government’s way of rewarding Landlords for this huge effort is to tax and regulate us out of business. The direct effect of which will be huge rises in homelessness as Landlords sell up.
    Current FTSE 100 average dividend is 4.9% Property rental yields are around average 5% however once shares are purchased that’s it… No repairs, cleaning up after tenants, vetting tenants right to rent, meeting legal compliances etc etc etc. Not to mention the horror of dealing with evictions, non-payment of rents, cannabis factories!!!
    Unless the government intend to build hundreds of thousands of houses for rent every year to accommodate the 10 million growth in population over the last 40 years I would suggest the government stop all the draconian punishment beatings of landlords, simply say sorry to Landlords and go and sit on the naughty step for the foreseeable future.

  2. I have reduced my portfolio by 2/3rd and now plan to reduce the left over 1/3rd gradually. This is because of Tax and threat of removal of section 21, mainly but also of more and more responsibilities on Landlords.
    The general trend for the Governments (whether it is Tories or Labour) is to make life of Private Landlords more difficult and they treat all Private Landlord as rogue landlords!
    Even the Courts are mainly Anti small Landlords.

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