The Rise of BTL – Portfolio rental returns increase b…

Specialist rental platform, Ocasa, recently shared new findings about rental incomes landlords have received over the past year.

According to the analysis, the average landlord is enjoying an 18% increase in their estimated total rental income. 

The data focuses on how the average number of buy-to-let (BTL) properties in a portfolio and the total rental income per portfolio and gross rental incomes have changed over the past 12 months.

BTL property portfolios

The specialist rental platform claim that the average UK buy-to-let investor has boosted their property portfolio to an average of 8.2 properties this year. That is a 17% increase in the average portfolio size of 6.9 properties in 2021. 

During this period, the average gross rental income of the average property has also climbed by 0.5% to £7,891. These figures are the equivalent of an average rental income of £63,917.

the largest portfolios with an average of 15.5 properties reside in Yorkshire and the Humber Sizable portfolios can also be found in the North East (10.8) and East Midlands (10.5). 

With 50% year-on-year increases, investors in Yorkshire and the Humber have one of the largest increases in portfolio size. 

The capital experienced a 43% increase despite having some of the lowest average portfolio sizes at 8.3. The average buy-to-let portfolio in central London commands an estimated £93,890 in rental income per year, up 42% annually. 

Sales and marketing director at Ocasa, Jack Godby, commented: “It’s great to see that, despite the UK Government’s best efforts, the buy-to-let sector has really hit the ground running in 2022.”

“Like any area of the property sector, investment levels, property prices and rental values can vary drastically from one region to the next and this understandably has an impact on the size of a buy-to-let portfolio, the rent achieved per property and the overall return made.”

“However, it’s clear that strength is building across the market with respect to an increased level of income. The fact that only two regions have seen the average portfolio size reduce is also testament to the resilience and consistency of bricks and mortar as an investment vehicle.”

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