According to data from Hamptons International there were an estimated 2.66 million landlords in Great Britain in 2019, but how much do you really know about them? The following is a snippet of the data collected from respondents of our Big British Property Survey and collated in Reapit’s newly released interactive 2021 State of Lettings Report.
Our Big British Property Survey asked landlords various questions to deliver a breakdown of the landlords in Great Britain. We asked landlords about the size of their property portfolio, how they rate the level of rent received from their properties, and what their biggest concerns are as a landlord.
What is the size of landlord property portfolios?
The English Private Landlord Survey (2018) conducted by the Ministry of Housing, Communities & Local Government found that 45% of landlords have just one rental property in their portfolio, and this was backed up in our Big British Property Survey with nearly 50% of landlords owning only one rental property in their portfolio.
At the time of the ONS survey, few landlords intended to reduce the size of their portfolio, with 53% planning to keep the same size portfolio, 10% planning to increase their portfolio, 10% planning to reduce their portfolio, and 5% planning to sell their whole portfolio.
Has COVID encouraged landlords to exit the market? It would seem not, as the NRLA Q1 2021 Landlord Confidence Index found that the proportion of landlords planning to buy over the next 12 months is 50% higher than in Q1 2020.
Given that renting out a property is a form of investment and income, it is understandable that the level of rent set would be an important factor for landlords. Our survey also asked landlord to rate the rent received for their property(s), and on average the response was that it was about right for more most respondents – but could be better.
What are landlords’ biggest concerns?
The biggest concerns for landlords in our Big British Property Survey were predominantly damage to property, reliability of tenants, and rent arrears.
Damage and rent areas are understandably key issues, and the English Private Landlord Survey found that damage was the main reason a tenant’s deposit was not returned (either in full or in part) by 65% of landlords, and 33% of landlords in the survey withheld the deposit specifically due to rent arrears.
Challenges and regulations
The lettings industry was forced into significant turmoil at the outset of the COVID-19 pandemic in early 2020. With lockdown and the forced closure or restricted operations of business across the spectrum, many tenants were faced with a reduction or even complete loss of their income. But landlords faced challenges even prior to the outset of the COVID-19 pandemic.
Dive into our brief review of some of those challenges past, present and future, along with more insights collected on tenants, landlords, and individuals living with parents in Reapit’s interactive 2021 State of Lettings Report.