Property Investors Are Seeing Rents Rise Above Inflation
Buy-to-Let investors have had a tough time recently, as several tax changes and regulations have challenged the profitability of property portfolios.
One of the positive outcomes from this has been a more professional and competitive sector, meaning renters generally obtain a higher standard of accommodation (though this is not always the case).
However, there is a widespread misconception that attacking landlord profit margins directly or indirectly will have no negative consequences for tenants. However, in order to be sustainable and to reward the provision of quality accommodation, the private rental sector must cover its costs and make a profit.
As inflation and the tax burden have both risen, it’s not surprising that average rents have risen as well, which has been significant for property portfolio owners. This week, I came across some data that highlights what has happened in the last year to gross rental income generated by Buy To Let portfolios…
📊 The rental income of an average portfolio of 8.2 properties generates about £63,917 yearly, up 18 per cent from 2021.
📊 A typical Buy To Let portfolio in London generates around £93,890, which is 42 per cent higher annually.
📊 Portfolio size is growing. Yorkshire property investors currently have the most properties per portfolio, averaging 15.5 properties.
Data source: Ocasa report
