Increase in landlord property portfolios

The average number of properties owned by residential landlords has risen from 6.3 to seven in the past year, according to figures released today (Friday 23rd October).

Lower interest rates and higher rental yields are behind the 11 per cent rise, claim the Association of Residential Letting Agents (ARLA).

Portfolios have now almost doubled in size in the last five years with landlords owning an average of four properties each in 2004.

The news follows reports yesterday that property repossessions could reach more than 18,000 before the end of next year prompting ARLA operations manager Ian Potter to warn potential investors to "take heed".

"There is a huge potential for investment at present," he said. "But take heed from the number of buy-to-let repossessions that this recession has seen and only borrow what you can realistically manage."

Chris Norris, policy manager of the National Landlords Association, added: "The reported increase in average portfolio size is good news for the private-rented sector and, crucially, means that more homes are being made available. This upturn demonstrates the resilience, and counter-cyclical nature of private-renting that the NLA has long recognised."

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