Number of landlords in the PRS drops to a seven-year ...

The number of landlords in the private rental sector has fallen to a seven-year low, according to Hamptons International’s latest monthly letting index.

Recent tax and legislative changes have resulted in a reduction in the total number of privately rented homes, falling by 156,410 since its peak in 2017, and yet the number of landlords has fallen further.

Hamptons International estimates that there were 222,570 fewer landlords in the PRS in 2019 than in 2017.

The number of landlords peaked at 2.88 million in 2017, but tax and regulatory changes have caused some landlords to sell up and leave the sector.

By 2019, there were 2.66 million landlords in Great Britain, 8% fewer than the 2017 peak, which means that the number of landlords has fallen to the lowest level in seven years when there were 2.58 million landlords in Great Britain.

Despite the drop in the number of landlords in the PRS, the average landlord now owns more properties.

The average landlord in Great Britain owned 1.93 buy-to-let properties last year, the highest level since 2009 when the average landlord owned 2.02 properties.

Last year 30% of landlords owned more than one buy-to-let property, the highest proportion on record, which is up from 21% in 2016 when many of the tax and regulatory changes were announced and is double the proportion recorded a decade ago when 15% of landlords owned multiple buy-to-let.

Table 1 – Landlords with multiple properties

	Landlords with multiple properties
2005	14%
2006	15%
2007	16%
2008	16%
2009	15%
2010	14%
2011	15%
2012	16%
2013	18%
2014	19%
2015	20%
2016	21%
2017	27%
2018	28%
2019	30%

Source: Hamptons International

Aneisha Beveridge, head of research at Hamptons International, said: “The number of landlords in the private rented sector has fallen to the lowest level in seven years. While 222,570 landlords have left the sector since 2017 due to tax and regulatory changes, those who have stayed tend to have bigger portfolios – a further sign that the sector is professionalising. The average landlord in Great Britain owned 1.93 properties last year, the highest level since 2009.

“Rents rose in every region across Great Britain in January to stand 3.6% higher than at the same time last year. The number of new homes purchased by landlords remains low, which is feeding through to fewer homes available to rent. This is particularly true in the South, where rents are rising the most.”

Landlords in the North East, where properties remain broadly affordable, had the largest portfolios.

The average landlord based in the North East owned 2.05 properties last year, closely followed by landlords based in Yorkshire & Humber, at 2.03 properties per landlord, and London at 2.01 properties per landlord.

Investors in Wales and Scotland were least likely to have big buy-to-let portfolios, with the average landlord letting out 1.83 properties in each region.

Table 2 – Portfolio size per region (2019)

Region	Properties per landlord (2019)
North East	2.05
Yorkshire and the Humber	2.03
London	2.01
East Midlands	1.99
West Midlands	1.93
South East	1.88
South West	1.88
North West	1.88
East of England	1.85
Wales	1.83
Scotland	1.83

Source: Hamptons International

Across Great Britain, average rents for new lets rose to £998 per calendar month (pcm) in January, up 3.6% on the corresponding period last year.

Rents continued to increase the most in the South West, up 6%, followed by the East at 4.1%, and Greater London, also at 4.1%.

Rents rose in every region, but Wales recorded the weakest rental growth at 1.2%.

Table 3 – Average rent of new lets (pcm)

Region	Jan-19	Jan-20	YoY
Greater London	£ 1,714	£ 1,783	4.1%
South West	£ 784	£ 831	6.0%
South East	£ 1,037	£ 1,070	3.2%
East	£ 943	£ 982	4.1%
Midlands	£ 678	£ 694	2.4%
North	£ 625	£ 646	3.3%
Scotland	£ 639	£ 653	2.2%
Wales	£ 652	£ 659	1.2%
Great Britain	£ 963	£ 998	3.6%
Great Britain (Excluding London)	£ 770	£ 797	3.4%

Source: Hamptons International

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