Larger portfolios linked with landlord profitability

Landlords with larger property portfolios are more likely to make a profitable full-time living from their assets, new research has demonstrated.

The study by research firm BDRC Continental showed that 68 per cent of Britain’s landlords with 20 or more properties manage this, with 69 per cent of those with 11-19 and 40 per cent who own 5-11 assets do the same, reported mortgageintroducer.com.

Mark Long, director for BDRC Continental, stressed that it is a “tough time” to be a landlord with just one property to their name; people with several properties to rent may have found trading conditions easier. The report covered the second quarter of 2012.

“Regardless of their size there is no question the private rental sector relies on private landlords and whilst a third may aspire to increase their property portfolio, they will only be able to achieve this goal and and add to Britain’s privately rented housing stock if they can make a profit from that one property,” remarked Mr Long.

A graph published on bdrc-continental.com showed how each category of landlord has fared in terms of making a loss over the past year. Again, landlords with 20+ properties arguably led the pack, with six per cent of this group making a loss at its highest point in the previous 12 months.

People in the one-property was bottom of the rankings in this respect, with 16 per cent of landlords making a loss in the second quarter of 2012 and the third quarter of 2011.