Landlords have reduced the size of their portfolios by more than a quarter over the past year in some parts of the country, according to quick sale firm Open Property Group.
Its analysis of survey data from The Mortgage Works, found that in Yorkshire and the Humber, the average size of a buy-to-let portfolio has fallen by 27% year on year to nine properties.
Across England and Wales, the average buy-to-let portfolio shrank by 1.6% to 8.5 properties it found.
In the West Midlands the average buy-to-let investor currently holds 10.7 properties, down by 19% year on year.
In the South West the average portfolio reduced by 13% to 6.5 properties.
The average BTL portfolios also reduced across the North East, central London, East Midlands and East of England.
However outer London, the North West, South East and Wales all saw landlords expand their portfolio size on average.
The overall trend of landlords downsizing portfolios is in spite of the fact rental income rose by an average of 8.8% over the last year, because higher expenses have squeezed profit margins and yields.
Open Property Group chief executive Jason Harris-Cohen says: “Much has been made about the landlord exodus in recent times and it’s fair to say that the severity of this trend has been largely exaggerated.
“However, the figures do suggest that while buy-to-let investors may not be exiting completely, they are reducing the size of their rental property portfolios.”
He adds: “With a reduction in capital gains tax fast approaching, we expect more investors will look to streamline their portfolios given that the cost of existing is set to reduce.”
