The latest figures by estate agent Barrow and Forrester show that despite the number of landlords operating in the buy-to-let sector dropping by 8% in two years, the value of the average BTL portfolio has risen by almost £40,000 in the past 12 months.
Across Britain, the average landlord’s buy-to-let portfolio consists of 1.9 properties and with the current average house price sitting at £254,525, it equates to an estimated value of £491,234.
This is an increase of £38,820 in the value of their buy-to-let portfolio in one year.
The South West has seen the most considerable uplift in portfolio value with an increase of £49,000 in the past year.
The East Midlands has also seen a notable jump of £41,000 in value, with the East (+£38,000) South East (+£37,000) and West Midlands (+£36,000) also climbing considerably.
London still leads in terms of the most valuable landlord portfolios.
With the average landlord owning two properties in the capital, the total value of their property investment is almost £1m having climbed by £34,000 in the last year.
The South East has not only seen one of the largest annual increases in portfolio value, but at £641,093, landlords in the region are also seeing the second-highest total sum.
The East (£575,187), South West (£530,890) and East Midlands (£427,942) are also home to some of the highest buy-to-let portfolios per landlord.
James Forrester, managing director of Barrows and Forrester, said: “A sharp increase in property values brought on due to the current stamp duty holiday has caused a considerable jump in the value of buy-to-let investment portfolio up and down the nation.
“However, true to form, it seems as though the government will do their best to spoil the party with an increase in capital gains tax via next month’s budget.
“This is quite astounding given the string of changes already implemented to stamp duty tax thresholds and tax relief and the impact it has had on landlord numbers.
“They don’t seem to understand that the buy-to-let sector is the backbone of the rental market and fewer landlords means fewer properties and even less affordable rents.
“Who will provide the much needed rental accommodation if not the buy-to-let sector?
“Because it certainly won’t be the government, who have proved time and time again that they’re incapable of implementing any meaningful strategy where the delivery of property market stock is concerned.”