In their Monthly Lettings Index for February, Countrywide Residential Lettings published findings that over 56% of landlords live within 10 miles of their rental properties.
Perhaps a more shocking statistic from the same research is that only 6% of the Nation’s landlords have more than one rental property on their portfolio. London’s landlords have the smallest portfolios, with just 4% of residential landlords in the city owning more than a single property. If the biggest barrier to owning additional properties is the difficulty of financing a purchase, it stands to reason that landlords have the smallest portfolios in areas with the highest prices.
London also has the highest proportion of landlords living more than 10 miles from their properties, in fact the city has over 20% of their residential landlords living more than 100 miles away from their rental properties! That’s more than twice the UK’s average.
In the North East, landlords are the most likely to be local, with 72% living within 10 miles of their additional properties. It seems that, overall, people are still afraid to take risks in this climate, and are staying local.
Nick Dunning, Group Commercial Director at Countrywide plc, said: “Location is key to buy-to-let investment and as the findings show, landlords tend to purchase in areas they are knowledgeable of in terms of property prices, monthly rents and the local amenities that attract tenants to an area. Given 94% of UK landlords own a single rental property, many choose to take a hands on approach in regards to management, so favour being closer to their rental accommodation.”
He also highlights growing rents across the UK as an encouragement for people to invest in cities outside of the capital, like their home towns.
“London still remains a good place to buy property given exceptionally strong capital growth over the last 12 months but investors are venturing further afield for investment opportunities.” Says Mr. Dunning.
Let’s hope that with the average landlord being local and hands-on, this could be the turning-point for the reputation of our industry, with proximity and smaller portfolios leading to focus, care and, ultimately, happier tenants.
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