Your Business and Industry
The Q1 2024 BTL Barometer
In our Q1 2024 BTL barometer, brought to you in conjunction with the Pegasus Insight Landlord Trends research report, we evaluate the trends which are impacting your landlord clients and how their portfolios are currently shaping up.
This research, delivered in partnership with the National Residential Landlords Association, paints a wider picture of the ‘typical’ NRLA landlord who is suggested to be 61 years old and has been letting property for around 17 years.
Delving into more detail, only a small minority of landlords are said to have been operating for less than 5 years (7%), with a majority active for over 20 years (42%). As you would expect, landlords who have been active for longer tend to have larger and more diverse portfolios, they are also more likely to have recently sold or be planning to sell property in the next year.
Getting down to the specifics of landlord activity and experiences, a typical portfolio is estimated to be worth £1.8m generating a gross income of £73k. At a portfolio average size of 7.2, this generates an average property value of £244k, and a per-property income of £845 a month.
Of these 7.2 properties, over half of which are owned outright. Within this, there was said to be an equal proportion of single property and 11+ property landlords in the sample. Almost all borrowing is via interest only mortgages, with a small minority utilising either commercial loans or repayment mortgages. (slide 11)
In terms of location, the research outlined that 58% of landlords only operate in the area where they live, with a further 29% also having property in other regions. Just 13% of landlords exclusively rent properties outside the region where they personally live. Several areas of operation are over-represented, including London and the North West.
When it comes to tenant type, 1 in 10 landlords let to students while 4 in 10 offer accommodation to tenants in receipt of benefit support. Larger landlords are almost twice as likely to let to benefit claimants, with 64% of 11+ property landlords operating in this space vs. 34% of those with 1 – 10 properties.
Within this, the typical tenancy duration is 5 years with families and the retired attracting the longest tenancies (c. 6 years on average) and, unsurprisingly, students the shortest, where 57% stay for 2 years or less.
This data represents a strong reflection of how portfolios are stacking up in the current economic climate and we hope it can be of some use to you and your landlord clients.
Take a look at our BTL calculator
FOR INTERMEDIARIES ONLY
