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Average rental property values and landlord incomes growing ‒ Foundation

  • 13/06/2023
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Average rental property values and landlord incomes growing ‒ Foundation
The typical value of rental properties and incomes increased substantially in the first quarter of the year, the latest buy-to-let barometer from Foundation Home Loans showed.


The report, which is compiled in conjunction with BVA BDRC landlord panel research, found that average portfolio values and rental incomes have both increased on the last quarter of 2022.

It found that the typical portfolio is now worth £1.55m, up by around £150,000 on the previous quarter, while gross rental incomes have grown by £8,000 to £70,000. 

On average, portfolios contain 7.6 properties and deliver an annual rental income of £9,211.

The study found that the typical portfolio size was mostly stable in the quarter, as it has been over the last year or so. 

According to the Foundation research, the typical landlord owes around £533,000 on buy-to-let mortgages, though more than one in three landlords have no buy-to-let exposure. When looking solely at those with a buy-to-let mortgage, the average amount borrowed jumps to £851,000, up by almost £125,000 on the final quarter of last year.

Of those leveraged landlords, the amount paid in mortgage interest across the quarter rose by an average of £6,500 across the quarter. 

Typical landlords now have 9.6 tenancies across 7.6 properties in their portfolio, with landlords in Yorkshire and the Humber owning the largest portfolios at an average of 12 properties each.

The report follows a separate study which found that around one in 10 landlords plan to increase the size of their portfolio in the next few years, though questions remain over how well prepared many are in meeting the incoming energy performance certificate requirements for rental properties.

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