UK Buy-to-Let Investors Growing Portfolios in North West

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Property Portfolio Size Fluctuating Across the UK

According to new research, property portfolios are growing in the North West, Wales and the South East, indicating a willingness for buy-to-let investors to continue their property business plan following a subdued 2023.

With landlords accelerating in certain areas, what does this mean for buy-to-let property investments?

Read on for more information.

Discover More: Learn how to buy more than one property with our article on how to build a property portfolio.

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Are Property Portfolios Growing or Shrinking in Your Area?

New research conducted by Open Property Group examined recent data on the sizes and profitability of buy-to-let portfolios over the past year.

The study reveals that, on average, investors have downsized their portfolios by -1.6% annually, with the typical investor owning 8.5 properties.

Portfolio reductions have been particularly significant in certain regions, such as Yorkshire and the Humber, with the average size decreasing by -27% to nine properties. Similarly, the average portfolio size in the West Midlands has diminished by -19% to 10.7 properties, while the South West has experienced a 13% decrease to 6.5 properties.

Reductions in portfolio sizes have also been observed in the North East, central London, East Midlands, and East of England.

However, there has been growth in places like the North West. The study also noted some growth in outer London, Wales and the South East.

Despite these trends, according to this research, the average rental income per property has risen 8.8% over the past year. Notably, Yorkshire and the Humber investors have experienced the most significant increase, with rental income jumping by 30.9%.

Find Out More: If you’re interested in growing your portfolio, it’s essential to understand how buy-to-let costs can affect which properties you can afford.

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Why Could More Investors Be Growing Their Property Portfolio in the North West?

It is interesting to see property portfolios growing in the North West, while other regions see a decline. There are many reasons why this may be the case:

Firstly, the North West offers good-value property prices compared to many other regions in the UK. For instance, HM Land Registry UK House Price Index puts the average property price in the North West at £215,082. In contrast, the average price in the South East is £373,177, while the UK offers an average house price of £281,913.

Those property prices also lend themselves to some solid rental yields. The latest Zoopla rankings for the best-yielding areas revealed that the likes of Liverpool, Manchester and a smattering of other towns in the North West offer some of the best yields in the country.

However, experts have also pinpointed the North West as a potentially lucrative investment opportunity. In the latest Savills cross-sector forecast, the North West buy-to-let market earned a return prediction of 9.2%, making it one of the hottest markets for property investors. Savills also expects the North West to see capital growth of 20.2% by 2028.

For more North West property investment insights, see our guides on:

Author

Dale Barham

Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.