The Private Rented Sector (PRS) continues to gain popularity in England with 17 per cent of landlords now owning at least five properties, representing 31 per cent of the total PRS market.
The latest English Private Landlord Survey (2018) identifies PRS as one of the primary investment categories in England. Increasingly, a greater number of landlords is owning multiple properties in view of a steady rental income.
As many as 46 per cent of landlords became a landlord because they preferred property to other investments; 44 per cent did so to contribute to their pension. Only 4 per cent became a landlord to let property as a full-time business.
About 45 per cent of landlords has just one rental property, representing 21 per cent of the PRS. However, 38 per cent of landlords owns between two and four properties, representing 31 per cent of PRS. It is evident that those landlords owning at least five properties are dominating PRS.
Interestingly, 94 per cent of landlords rents the property as an individual, 4 per cent as part of a company and 2 per cent as part of some other organization, according to the Survey.
Landlords, on average, report a gross rental income of £15,000 per year (before tax and other deductions). For most landlords, income from rent makes up two fifths (42 per cent) of their total gross income.
Since the last Survey was undertaken in 2010, PRS has undergone substantial growth and change. The number of households in the sector rose by 25 per cent between 2010-11 and 2017-18, from 3.6 million to 4.5 million households.
The 2018 English Private Landlord Survey (EPLS) is a national survey of landlords and letting agents, who own and/or manage privately rented properties in England.