The Majority of Portfolio Landlords Are Still Going and even Growing!

In the ever-dynamic landscape of the UK property market, a particular segment of landlords stands out for its resilience and ambition — the portfolio landlords. These are individuals or entities that own multiple rental properties. Drawing upon insights from Dataloft Inform, we’re diving deep into the statistics to observe the trends and trajectories of portfolio landlords in the UK.

landlord statistics from dataloft

The Aspiring Expansionists

More than a quarter of landlords who currently boast five or more properties are not resting on their laurels. They are actively planning to augment their portfolios over the coming year. In comparison, the aspirations aren’t dim for those who own 2–5 properties either. One in five from this group are also looking to expand, according to Rightmove. This demonstrates a palpable sense of confidence in the property market among portfolio landlords.

Steady As She Goes: Consistency Over Change

Consistency is key for many landlords. Over half are strategizing to either maintain their existing property portfolios or even enhance them by acquiring additional properties. Such a trend indicates a steady commitment to the sector. This stands in contrast with single-property landlords, who appear to be more inclined to exit the sector. Their reasons could be manifold, from managing tenant relations to facing market uncertainties. But for those with larger portfolios, the breadth of their holdings likely provides a buffer against individual property fluctuations.

The Bigger Picture: Ownership and Tenancies

Shedding light on the influential role of portfolio landlords in the UK rental scene, the English Private Landlord Survey of 2021 delivered some noteworthy figures. While landlords owning five or more properties comprised only 18% of the total landlord population, they were responsible for a staggering 48% of all tenancies. Such data underscores the significant role these landlords play in providing housing options for renters across the country.

Mortgage Matters: Stability Amidst the Storm

One of the aspects that likely contributes to the confidence of portfolio landlords is the security they hold in terms of their financial obligations. A survey from Property Academy, covering nearly 6,000 landlords, provides some illumination here. Over three-quarters of the surveyed landlords had buy-to-let mortgages where they owed less than half the value of their property portfolios. Such low loan-to-value ratios are indicative of a strong equity position. This can be a critical factor, especially in times of market volatility, providing landlords with financial stability and peace of mind. Landlords with lower loan-to-value mortgages are consequently less impacted by the undulating currents of the market.

The Resilient Path Forward

While market dynamics are always in flux, and external factors can influence decisions, it’s evident that portfolio landlords in the UK are charting a path marked by growth and stability. Their strong equity positions, combined with the sheer volume of tenancies they manage, make them indispensable players in the property market.

If you’re a landlord looking to expand your portfolio or are considering entering the property market for the first time, now could be a propitious moment. Our expert team is on hand to guide you, offering insights, support, and bespoke property solutions tailored to your ambitions. Reach out to us today, and let’s shape your property journey together.