Opinions?
I was surprised to see increase start of 2022.
Anyone got any more recent figures?
Source: Hamptons
I suspect that it’s switching to larger companies and landlords with more properties expanding their portfolio. Shifting away from smaller private landlords who only have 1-5 properties the manage.
While a small individual, the risk is too much - for a larger invester/company this is a great time to increase your portfolio as the cost of rent increases and there’s more demand.
The question is very interesting and we are all wondering why.
The Rental Reform White Paper caught many by surprise. The figures mainly relate to sales before this came into being. As you say up to date figures would be interesting to see as this might be an inflexion point.
Short term trends need to be looked at with a pinch of salt particularly as there are many factors.
The trend does support the move from being small to being bigger or at least doesn’t contradict that trend. If you have a bad tenant about which you can do nothing in practice or it will take a lot of legal expense and expertise you are better off being bigger.
Consolidators might be in acquisition mode and the product on the market may suit them particularly. Regional disparities would be interesting to see. With mortgage costs on the rise higher yielders might be of particular interest to the PRS. Mortgaged properties in a weaker market are those most likely to come on particularly in recession impacted areas.
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