Your Business and Industry

Buy to let landscape 2021 – latest portfolio size and yield report

Every quarter, in conjunction with BVA BDRC, we ask around 900 landlords for their insight on every aspect of the buy to let market, including portfolio sizes, borrowing intentions and view of the current markets.

We compare the data each quarter to bring you data-led trends and predictions to support your mortgage advice business.

 What does a ‘typical’ portfolio look like in early 2021? (895 respondents)

  • In Q1 2021 the typical portfolio was worth around £1.2 million and generated an annual gross rental income of £54,000 
  • The average portfolio now has 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. 

BTL borrowing

  • 45% of properties in the average portfolio are owned outright, 40% are funded via a BTL mortgage.
  • Around 6 in 10 landlords fund at least part of their portfolio through BTL borrowing, holding an average of 4.8 loans each.
  • For ‘Non-portfolio BTL landlords’ the average LTV is 45.0%. Whereas ‘portfolio landlords’ (with 4 or more BTL mortgages) have a higher average LTV of 55.8%. 
  • The typical amount repaid annually by leveraged landlords continues to fall, down from £4,720 a year ago, to £16,650, indicating that in times of uncertainty, landlords have held onto cash that they might otherwise have paid back in.

Limited company

  • Whilst the majority of landlords rent their property as an individual (80%), 18% of landlords hold at least one of their properties within a Ltd company structure.

Discover our straightforward approach to limited company mortgages

Diversity of property

  • The profile of a typical portfolio remains largely unchanged, with terraced houses the most commonly owned type of rental property and 15% of landlords owning an HMO.

  • Portfolio diversity increases in line with size, with landlords holding 11+ properties in their portfolios having an average of 3.2 different property types in their portfolio, compared to the 1.8 held on average by those with 10 or fewer properties.
  • Relative to the rest of the country, landlords with property in London and the South East have a significantly higher incidence of flats in their portfolio and a lower incidence of houses.

We look forward to working by your side to meet the evolving needs of these landlord portfolios over the course of 2021 and beyond.

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