The most activity was recorded in the North West, where 31% of landlords bought at least one property during 2011, while 11% sold at least one property.
According to a survey conducted by the Association of Residential Lettings Agents (ARLA), this reshaping of rental property portfolios is unlikely to continue through the course of 2012.
The number of landlords who expect to buy more properties in the coming year dropped from 27% to 25%, while the number expecting to sell rose from 8% to 9%.
Average loan to values on buy-to-let properties have been shrinking steadily since the beginning of the credit crunch, from 60% LTV in 2007 to 46% today.
This decrease may be a reflection of tighter lending criteria, lower house prices, or both.
Tim Hyatt, President of ARLA said: “PRS forecasts have stated that the rental sector will still offer growth in the coming year – probably of four to five per cent according to Liam Bailey of Knight Frank.
“Rental growth will remain robust across all sectors, albeit at a more sustainable level of around 4% to 5% for this year. This will come about in part because of the continued inactivity in the sales market but nothing like the growth we have seen for the past two years. But the PRS still represents substantial value for investors looking to enter the market or increase their participation.”
Ian Potter, ARLA Operations Manager, said: “These statistics indicate that landlords changed their property portfolios throughout last year, in some cases expanding portfolios despite gloomy economic climate.
“However, our research also suggests that into 2012 this situation might change, which could be a sign for concern. A healthy PRS is crucial in providing choice and flexibility for consumers across the housing market in 2012 and, ultimately, helping to provide more homes for more people.
“We would urge anyone planning to let out additional properties, or a property for the first time, to do plenty of research and consult with experts – it is vital to ensure your investment is properly protected. Using a regulated ARLA agent will mean you have access to Client Money Protection and a redress scheme, as well as advice on selecting the right property at the right price.”
