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Average landlord earns £19,999 a year from property – BM Solutions

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Written by: Vicky Hartley
23/10/2014
A survey revealed 44% of landlords generated a gross income of less than

A survey revealed 44% of landlords generated a gross income of less than £19,999 in the last year, and landlords with smaller portfolios of one to four properties spending an average of £10,335 on BTL repayments in the last 12 months.
phil-rickards-bm-solutions-btl-forumThe mean average property holding for each landlord is 6.5 properties and total market value of the ‘average’ portfolio is £1,031,000, according to a survey.

This generates an average gross annual rental income of £48,000, with an average of £20,950 being spent on repayments in the last 12 months.

Over a quarter of buy-to-let landlords are planning to increase their portfolios in the next 12 months, with 16% intending to expand their portfolios, according to the latest the latest BM Solutions quarterly index.

The BDRC Continental Landlord Panel revealed landlord optimism has risen from 28% to 37% in the last 12 months.

The survey showed 42% of landlords reporting stronger tenant demand in the last three months, compared to 37% in Q2.

Landlords in the South East and Outer London are seeing the highest demand, with demand weakest in the North east.

Yorkshire & Humber is the most profitable region with an average rental yield of 6.8% with central London at 5.3% and outer London 5.0% emerging as the least profitable for landlords.

Phil Rickards, head of BM Solutions said: “While the latest official figures show a degree of uncertainty creeping into the outlook for the economy as a whole, the future looks optimistic for landlords as many are reporting increased tenant demand and more than a quarter are planning to expand their portfolios.

“There is further evidence of a North-South split, with tenant demand greatest in the South East and London, whereas the greatest yields are to be found in Yorkshire & Humberside, Scotland, and the North East.”

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