As we’ve highlighted in previous blogs, rented properties have been in high demand over the last 12 months. With existing tenants wanting to switch properties to accommodate working from home and new tenants looking to temporarily rent to take advantage of lower stamp duty, there’s never been a better time to be a landlord.
There were concerns that significant increases in the property market and the threat of increased capital gains tax would tempt many landlords to sell up. However, according to a recent report featured on Moneyage.co.uk, the number of rental properties has fallen by less than 1% since 2016.
England currently boasts £1.3trn worth of housing stock within it’s the private rental sector across an estimated 4,799,000 properties. Most of this is concentrated in London and the South East with a 36% share and over half (£741bn) of the capital value, though even the lowest of all regions, the North East, has £29bn over it’s 4% of rental market stock.
Despite the steady growth in house prices, landlords have not been cashing in on their investments in large numbers, highlighting the strength in the sector and the importance of the private rental market.
As the proposed capital gains tax increase has failed to materialise in recent budgets more landlords are choosing to enter the market to enjoy not only the yields available but the capital appreciation that a rental portfolio can bring, and they’re getting younger too.
The average age of British landlords has fallen in recent years with 47% believed to be under 40, a change from just three years ago when only 29% were aged under 44. Younger landlords are more optimistic about the future and are choosing to invest in the market and grow their portfolios quickly.
The gender gap is closing too with women making up half of private landlords in the UK, an increase from 40% in 2018 according to another recent survey, from Landlord Today.
Average rental income throughout the sector continues to vary with women earning an average of £18,825 a year compared to £21,885 by their male counterparts with the very youngest landlords (18-30 years) generating an average of £25,481 a year.
It seems the ‘traditional landlord’ has transformed from a stereotypical middle aged man into a more diverse and younger demographic.
If you’re looking to rent out your first property, our lettings experts at Poole Townsend can guide you through our 5 steps of becoming a landlord, or help you grow your portfolio through our estate agency colleagues.