“Amateur” landlords declining in the face of larger landlords increase

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“Amateur” landlords declining in the face of larger landlords increase

Two recent reports have highlighted that small landlords are leaving the market, whilst many larger landlords are expanding their property business.

It is estimated that the number of large landlords has increased from

34% of the total number of landlords to 39%. Large-scale landlords are defined as those owning between 6 and 29 properties.

These figures were revealed in Paragon’s private rental sector trends report. Landlords that have between 3 and 5 properties have fallen from 26% to 24% of the total landlords. The number of very large landlords owing over 50 properties has declined from 6% to 4%.

The report “The Emerging Landlord” by Simple Landlords Insurance revealed that 30% of single property landlords intend to sell their property compared to 8% of landlords who own more than two properties. This indicates that so-called amateur landlords with two or fewer properties are declining, but portfolio landlords with several properties are expanding.

Owners of houses with multiple occupants are particularly optimistic with 43% saying that they intend to buy more HMO houses.

Carl Agar, the founder of the Home Safe Scheme commented:

“Your ‘traditional’ landlord is seeing all of these new rules imposed and their returns drop. Meanwhile those new to the market are comparing those returns to what they’d get putting their money into a savings account and it actually looks pretty good. They’re seeing opportunity, and building the rules, regulations and changes into their business model.”

There are many commercial mortgages available for landlords who want to expand their property portfolio.

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