Landlords in England & Wales have seen their rental portfolio income increase by 8.7% in the past year.

That’s according to new research from London lettings and estate agent, Benham and Reeves, who compared the average rental portfolio income, based on portfolio size and rent values, in Q1 2022 with that in Q1 2023.

Previous research from Benham and Reeves recently reveals that throughout the nation, portfolio sizes have fallen by -5.6% year-on-year, dropping from 9.1 properties to 8.6.

However, despite smaller portfolios, the average rent value has increased by 15.1%, rising from £7,396 in Q1 2022 to £8,510 in Q1 2023.

As such, the average landlord’s annual portfolio income has increased from £67,304 to £73,186 over the same time period, an increase of £5,882 or 8.7%.

On a regional level, the biggest income increase has been seen in London. The average portfolio size in the capital has shown the slightest of declines from 7.6 properties to 7.5, but the average rental income per property has soared by 34.7% to £13,095.

This means that the annual rental income generated from the average buy-to-let portfolio within the capital has increased by 32.9% and now sits at £98,213.

Despite falling rent values leading to a -7.7% decrease in the income per property, landlords in the East of England have enjoyed a strong portfolio income increase of 32.7%.

This is due to a huge increase in portfolio size, rising 6.4 properties to 9.2 in the past year.

Portfolio income has also increased in the South East (27.8%), Yorkshire & Humber (16.4%), the South West (15.5%), North West (5.5%), and North East (0.6%).

In three regions, however, landlords have seen their portfolio income decrease over the past year.

Wales has seen the most significant decrease of -19.2%.

This comes despite the average rental income per property seeing the biggest increase of all regions (41.5%), and is therefore being driven by the average portfolio size falling from 12.6 properties to 7.2.

The East Midlands has seen portfolio income fall by -11.1%, once again driven by a shrinking average portfolio size, down from 11.8 in 2022 to 7.8 in 2023.

The West Midlands has seen portfolios increase from 8.5 to 9.2, but a drop of -8.7% in income per property means that portfolio income has fallen by -1.2%.

Source: Property Notify