Countrywide’s latest index figures
- September 23, 2015
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According to Countrywide’s latest Lettings Index, UK landlords own their properties for an average of 17 years
before selling. This is apparently three years longer than the average homeowner and five years longer than
before the recession in 2007.
As the recovery from the recession took hold from 2011, the agency says the time landlords hold their
investments has fallen. The average time between sales by landlords dropped from 20 to 17 years between
2011 and 2015.
The Index shows that the 32% of properties owned by landlords have not been sold in the past 20 years.
Countrywide’s newly-appointed research director, Johnny Morris says “Most landlords consider property to be
a long term investment. With landlords keeping their properties for 17 years on average, there is more stability
in the sector than is widely recognised,”
“Long term investment decisions drive many landlords and two thirds of rented properties are owned without
buy-to-let finance. This means many landlords are in a position to ride out short term market conditions in
favour of expectations of future growth.”
Countrywide’s Index analyses over 65,000 properties, calculating the average monthly rent of newly let homes
at £937, a 1.1% monthly increase.
The highest monthly increase was recorded in Central London, where the average monthly rent for a newly let
property hit £2,583 in July, and a monthly rise of 6.8%.
The most significant drop was recorded in Wales at2.3%, where the average rent for a newly let property went
down to £685 a month.
The national average rent for occupied units at £846 a month, was calculated at an annual rise of 2.7%.
Morris continues “As landlords trade less often than homeowners, the growth of the private rented sector
weighs down on the number of housing transactions. Less liquidity in the sales market can cause local market
distortions and impact labour mobility,”
“As the private rented sector continues to grow it is likely we will see more owners searching for flexibility,
blurring the lines between tenant and landlord by letting their properties while renting elsewhere.”