The Foundation Home Loans Q4 2024 BTL Barometer

The latest data shows that the typical NRLA landlord has been letting property for nearly 19 years. This long average tenure as a landlord is reflected in the older age profile of NRLA members, with 82% aged 55+ and 45% retired. Those operating for longer typically have bigger and more varied portfolios, with the most experienced landlords (20+ years) also more likely to be actively divesting rental property. 

Breaking down the ‘typical’ Q3 portfolio, this is estimated to be worth £1.77m, generating a gross annual income of £77k. An average portfolio size of 7.4 properties in Q4 equates to the typical property worth £239k, generating £10,405 per year or £867 per calendar month in rental income. 

The research further outlines that most properties with borrowing utilise interest-only mortgages, while commercial loans and repayment mortgages are much less common. Outright portfolio ownership is suggested to be more common amongst those with the smallest portfolios (59% of those with 1 – 3 properties). However, a quarter of the very largest 20+ property landlords do not borrow to fund their portfolio. 

The average portfolio size fell slightly in the final quarter of 2024, following consistent growth. Landlords operating with at least some properties in a limited company structure tend to have significantly larger portfolios than those holding all their rentals as individuals (14.4 vs. 5.2). 

At a regional level, landlords with property in the East Midlands and North East have the largest average portfolio sizes in Q4, at just over 12 properties. 55% of landlords own rental property in London and the South, the same proportion as operate in the North and Midlands combined. Just over half (55%) of landlords only let property in the area where they live, whilst 31% also operate in other regions; just 14% exclusively let property in regions outside the area where they live.

Landlords report an average tenant stay of 5.4 years. Within this, almost 7 in 10 (68%) say the average tenant stay is more than 3 years, while 38% have an average stay over 5 years. Larger landlords with 11+ properties tend to report longer average tenant stays (5.9 years), while those letting HMOs (3.9 years) to students (3.3 years) or operating in Central London (4.0 years) see the shortest tenures on average.

Focusing on property types, landlords are most likely to let terraced houses, with individual flats also common. The report also adds that the profile of rental stock varies significantly by region, with terraced houses being the primary property type in the North and Midlands and flats being much more prevalent in London and the South East. One in 5 have HMOs within their portfolio (3.1 on average), increasing to 29% among larger landlords with 11+ properties.

This data represents a strong reflection of how portfolios are stacking up in the current economic climate, and we hope it can be useful to you and your landlord clients.

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