Average portfolio values have risen from £1.68m in Q1 2019 to an all-time high of £1.76m in Q2.
Larger scale landlords are continuing to make investments and grow their portfolios, Paragon’s latest PRS Trends Report has found.
The quarterly survey, which tracks the experience of more than 200 seasoned landlords, showed that landlords now have an average of 13.1 properties in their portfolio in Q2 2019.
Landlords with between 11 and 20 properties have grown proportionally from 14% to 18%, with average portfolio values rising from £1.68m in Q1 2019 to an all-time high of £1.76m.
John Heron, director of mortgages at Paragon, said: “Professional landlords with larger portfolios make up the backbone of the UK’s private rented sector (PRS) and it’s encouraging to see them continue to build their property portfolios."
There has been a sharp increase in those considering buying HMO property up from just one in 20 (5%) to one in five (20%), suggesting that landlords are looking to add higher yielding properties into their portfolios to offset some of the pressure from rising tax costs.
Heron continued: “With a heightened interest in higher yielding property types and an increasingly prudent approach to financial management, it’s clear that landlords are proceeding cautiously as they seek to head off the twin challenge of higher tax and growing economic uncertainty.”
Landlord sentiment remains subdued with only 13% of landlords feeling optimistic about the future according to the report.
