With the demand for rental property being so high, it is no surprise that buy-to-let (BTL) is an exciting prospect for many people. At Urban BASE, we believe the North East of England is an excellent location for people looking to invest, and we are on hand to assist you.
We know the local market well, and we stay in touch with the latest studies and reports into the sector.
Average BTL portfolio is rising
In a study carried out by Ocasa, a specialist rental platform, the average BTL investor in the UK has a portfolio of 8.2 properties in 2022. This is a 17% increase on 2021 figures, which stood at an average of 6.9 properties.
The average number of properties in a North East investors’ portfolio stands at 10.8. This is more than the average held in the East Midlands, standing at 10.5, but lagging behind the figure in Yorkshire and the Humber, coming in at an average of 15.5 properties per portfolio.
The average gross rental income of the average rental property has increased to £7,891, a rise of 0.5%. The average buy-to-let portfolio rental income stands at £63,917, which is a rise of 18% on the 2021 figures.
Jack Godby, Sales and Marketing Director at Ocasa, commented: “It’s great to see that, despite the UK Government’s best efforts, the buy-to-let sector has really hit the ground running in 2022. Like any area of the property sector, investment levels, property prices and rental values can vary drastically from one region to the next and this understandably has an impact on the size of a buy-to-let portfolio, the rent achieved per property and the overall return made. However, it’s clear that strength is building across the market with respect to an increased level of income. The fact that only two regions have seen the average portfolio size reduce is also a testament to the resilience and consistency of bricks and mortar as an investment vehicle.”
Tips for making a smart investment when developing a property portfolio
The following tips are helpful to anyone looking to expand their rental property portfolio:
Do your research
The first step to making a smart investment is to do your research. You should have a clear understanding of the UK rental market and the areas in which you are looking to invest. Additionally, it is important to be aware of the potential risks involved in any investment.
Consider your financial situation
It is also important to consider your financial situation before making an investment. You should have a clear idea of how much you can afford to invest and what your goals are for the investment. It is also important to be aware of the potential tax implications of any investment.
Choose the right property
When expanding your rental property portfolio, it is important to choose the right properties. You should look for properties that are in good condition and are located in areas with high demand from renters. Additionally, it is important to consider the potential return on investment when choosing a property.
Negotiate the price
Once you have found a property that you are interested in, it is important to negotiate the price. You should aim to get the best possible price for the property, as this will help you to maximise your return on investment.
Manage your property effectively
Once you have purchased a property, it is important to manage it effectively. This includes finding good tenants, maintaining the property, and ensuring that rent is paid on time. By managing your property effectively, you can minimise vacancy rates and maximise your return on investment.
Review your portfolio regularly
It is also important to review your rental property portfolio on a regular basis. This will help you to identify any problem areas and make changes if necessary. Additionally, reviewing your portfolio will allow you to see how your investments are performing and make adjustments as needed.
We can help at every point of the process, but the past two stages are areas where we can make the difference. We know the rental market well, and we’ve helped many landlords and property investors to achieve success.
Contact Urban BASE for all your property market needs
If you would like to arrange an appointment to discuss your next move in the property market, we are always happy to help. Call us on 0845 6431186 today.