Landlord property portfolio reaches high of £1.7m – Paragon

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  • 27/09/2018
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Landlord property portfolio reaches high of £1.7m – Paragon
The average market value of landlords’ investment property portfolios reached a record high of £1.7m during the third quarter of 2018, according to Paragon’s latest PRS Trends research.

 

The survey found that average portfolio values are now 6% higher than the £1.6m peak recorded ten years ago immediately prior to the global financial crisis.

During the banking crisis, portfolio values dropped to £1.35m in the first quarter of 2009.

However, after peaking at 14.8 properties in the third quarter of 2014, the average portfolio size now stands at 12.6 properties and despite the record portfolio values, landlord optimism about the future remains subdued.

Only one in ten landlords said they felt optimistic about the prospects for their property portfolio over the next twelve months, 21% expected to sell some of their buy-to-let properties, while 9% expected to buy.

 

Falling value

Even assuming portfolios remain unchanged in size, more landlords expected to see a slight drop in their portfolio value over the next 12 months than those who anticipated an increase.

John Heron, director of mortgages at Paragon (pictured), said that landlords operating in the buy-to-let sector have been subject to unprecedented tax and regulatory changes and they are understandably cautious about the future.

He said: “Many have already taken action to mitigate against the impact of these changes, including the sale of some of their properties and a reduction in gearing.

“While the increase in portfolio values will provide some cheer, landlords continue to face significant headwinds as they prepare for the first-phase impact of the mortgage interest tax relief removal and potential economic uncertainty surrounding Brexit.”

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