Your Business and Industry
The Foundation Quarterly Portfolio Barometer - What does a ‘typical’ portfolio look like?
Every quarter, we work with BVA BDRC to survey around 700 landlords about their portfolios. For the first quarter of 2022, here’s what they told us.
In an ever-evolving BTL marketplace, it’s important for landlords and intermediaries to keep track of market trends and shifting economic influences which are impacting tenant needs and the performance of their portfolios. Here’s what a ‘typical’ portfolio looks like at the moment.
Find out more about how we can help your portfolio landlords here.
Size and value
- The typical portfolio is worth around £1.38 million and generates an annual gross rental income of £61,000
- The average portfolio size has increased to 8.0 properties in Q1 ‘22, representing 8.8 tenancies.
- The typical property value is £172,625 (based on an average portfolio size of 8.0 properties) with an average income of £7,625 per property or £635 per calendar month.
- Landlords operating in Wales currently have the largest portfolios with an average of 12.6 properties, whilst the typical portfolio size is below 7 properties for those letting in the South East, Central London and the East of England
- Around half of properties in the average portfolio are owned outright, 41% with a BTL mortgage
Property type
- Terraced houses remain the most commonly owned type of rental property
- Almost 6 in 10 landlords have at least one terraced house in their portfolio, while 46% own individual flats, and 44% semi-detached houses.
- Landlords with the largest portfolios continue to have a more diverse portfolio and are considerably more likely to own detached houses and/or whole blocks of flats
- Landlords letting in the North and Midlands are most likely to own houses, while in London there continues to be a trend for flat ownership.
Profitability
- Almost 9 in 10 landlords are making a profit from their letting activity
- 3 in 10 of all landlords make a profitable full time living from their letting business, more than doubling to 68% for landlords with 20+ properties.
- Just under 6 in 10 say their letting income supplements their day job, while only 3% make a loss (consistent with Q4 ‘21).
We hope this outlines what a ‘typical’ portfolio might look like and provides useful insight into how and where you can support your landlord clients.
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