Large portfolio landlords reporting difficulties - poll

Landlords that watch over large property portfolios have been warned that times may be getting slightly tougher for them. This advice from BDRC Continental followed its Landlords Panel, which discovered that portfolio landlords took the highest rental yields at seven per cent, yet average rental yields fell during quarter four to 5.9 per cent - a 0.8 per cent drop on the previous quarter.
 
The report, revealed in Mortgage Introducer this month (February 16th), concluded that rental yields for all landlords fell to a year-low even though nearly half of those surveyed increased rents over the last 12 months. A further third (34 per cent) said they would do the same during the first half of 2012.
 
This isn't all bad, though, as landlord insurance customers still said they were upbeat about prospects for the private rental sector; only one in five did not say they were feeling positive about being a landlord.

Mark Long, director for BDRC Continental, told the publication that the difficult economy is making it harder for landlords to avoid the impact of rising costs and falling profitability.
 
He continued: "This is the highest level we have seen of landlords with 20-plus properties making a loss, and the biggest increase between one quarter and another. In previous waves of the research the highest figure of loss making for this group was four per cent in the third quarter of 2009. Some landlords are clearly feeling the pinch."