Recent UK buy-to-let landlord statistics show that £8.5 billion worth of properties were bought by UK landlords in the first quarter of 2022 alone. 

For many, becoming a buy-to-let landlord is seen as an appealing business venture, with many landlords using the scheme to build property portfolios that generate considerable income.

Like with a lot of industries, the aftermath of events such as Covid-19 and the cost of living crisis has created some degree of volatility in the housing market. To some extent, fluctuating prices have impacted the future plans of both current and prospective buy-to-let owners.

Our research collates various UK buy-to-let landlord statistics for 2024, by analysing trends, assessing how buy-to-let landlords have changed over time, to help make predictions about the coming years. 

Overview: Top 10 UK buy-to-let landlord statistics 2024

• There are currently around 2.82 million landlords in the UK, with more than two-thirds (68%) over the age of 55.

• The average landlord portfolio was valued at £1.65 million in Q2 2023.

• Milton Keynes saw the greatest growth in buy-to-let properties between 2021-22, with a 667% increase.

• The average UK landlord has 8.6 properties in their portfolio, generating a gross annual rental income of around £8,256 per property.

• More than 50% of UK landlords operate in either the South East, South West, or London.

• More than a quarter (26%) of landlords reported making a profitable, full-time living in Q3 2023.

• Landlords in Central London had the highest average portfolio value, at around £2.66 million.

• Welsh landlords had a higher rental yield than any English region, at 5.8%

• Central London landlords had the lowest average rental yield in England (4.4%).

• Almost two-fifths (40%) of landlords have been operating lettings for between 11-20 years.

Buy-to-let landlord demographic statistics

Buy-to-let mortgage statistics from the ONS suggest there are around 2.82 million landlords in the UK, based on the number of individuals who declare income from a property on their Self-Assessment tax returns. 

What is the most common age group to be a Buy-to-let landlord?

Buy-to-let investors and tenancies are most likely to be aged between 55-64 years old (31% vs 35%), closely followed by 65-74-year-olds (24% vs 25%). Cumulatively, this means that almost two-thirds (63%) of landlords are over 55, with the median age being 58 years old. This is slightly more for tenancies, with more than two-thirds (68%) aged over 55. 

A breakdown of UK buy-to-let landlords and tenancies by age group 

Becoming a buy-to-let landlord is not easy. It requires time, patience, and capital. This might help to explain why approximately a third (32%) of landlords are retirees, compared to 34% for tenancies, with 15% under the age of 44 for landlords and 11% for UK tenancies. 

UK buy-to-let landlord statistics by background

The gender split amongst UK landlords is also fairly even, with just over half (55%) identifying as male. On the other hand, ethnic representation is not evenly distributed amongst the UK landlord population, with 88% identifying themselves as White, followed by 4% as Indian, 2% as Black, and 1% from Pakistani or Bangladeshi origin.

A breakdown of the percentage of Buy-to-let landlords in the UK by ethnicity

When asked for their motivations for becoming a landlord, 42% said they wanted to invest in a property, with 40% stating it was a way to contribute to their pension or supplement an income (35%).

Very few claimed it was to provide a home for a friend/relative, or that they had inherited the property (both 6%).

A breakdown of the most common reasons buy-to-landlords referenced as their reason for becoming a landlord

The overwhelming majority of landlords (94%) choose to operate on their own, or as part of a group of individuals. This is contrasted by one in 20 (5%) who work as part of a buy-to-let limited company. 

A breakdown of the most common ways landlords operate their lettings business

Only 1% opt for a mixed approach, with some of their portfolio managed by themselves, and the rest with a company/agent. 

Which regions have the most buy-to-let owners?

According to recent buy-to-let statistics, UK landlords are most likely to live in the south of England. Less than half (46%) operate in the South East, South West, or London, with almost a fifth (17%) in London alone. 

London was one of two regions with more than 5,000 landlords per 100,000 people (5,266), with the other being the South East (5,111).

As of 2023, the North East of England was responsible for far fewer buy-to-let properties than anywhere else in the UK, with just under 2.5% of landlords coming from the region. The North East also has the lowest number of landlords per 100,000 people (2,495).

A breakdown of UK regions and the number of landlords per 100,000 people

While the North West’s total of 8% was the highest percentage outside the south of England, this was only the fourth-highest percentage overall in the UK – behind London, the South East, and the South West.

Just under 6% of UK buy-to-let landlords were found in Scotland, compared to just under 4% in Wales. Northern Ireland had the lowest proportion of landlords in the UK, accounting for less than 2.5% of the overall total. 

Which towns and cities have the most buy-to-let owners?

The City of London has the highest percentage of landlords per population of anywhere in the UK, at nearly 24%. This is more than twice as many as any other region and means that nearly a quarter of all residents in the area have some kind of property income. Around two-fifths (40%) of the top 20 places for buy-to-let landlords were based in London, including all of the top three.

Richmond upon Thames had the next highest percentage of landlords, at 9.3% – more than three-fifths (61%) fewer than the City of London. Richmond was followed by Kensington and Chelsea (9%), which was the only other place where at least 9% of the population were landlords.

A breakdown of the UK areas with the highest percentage of landlords per population

90% of the top 20 places were based in the South of England, with the Isles of Scilly and Derbyshire Dales being the only exceptions. The Isles of Scilly’s total of 8.4% was the most of anywhere outside the south of England and the sixth highest overall in the UK. 

Though Derbyshire Dales’ total of 7.1% per was the second-highest of any non-southern area, this was less than a third of the total found in the City of London and more than 2% lower than Kensington and Chelsea.

Which towns and cities have the most buy-to-let owners?

Kingston Upon Hull has the lowest number of landlords per 100,000 people in the UK, at just 1%. This was around a third lower than the next lowest region (Blaenau Gwent, 1.3%), and means that just over one in every hundred residents in the area is a landlord.

A breakdown of the UK areas with the lowest percentage of landlords per population

Scotland featured heavily in the areas with the lowest landlords per 100,000 people, with more than a third (35%) of the top 20 based in Scotland. Of these, West Dumbartonshire and North Lanarkshire had the lowest percentages, with just 1.3% of people in each region landlords.

Around 15% of the list comprised places in the North East of England, with Middlesbrough, Sunderland, and Hartlepool all featuring. All three places were found to have a landlord per population rate of around 1.8%.

Which cities have experienced the most growth in buy-to-let properties?

In 2021, buy-to-let growth was greatest in Milton Keynes, with a 667% increase in the number of buy-to-let properties compared to the previous year. This is more than double the rate of growth for Manchester and Bristol, who both experienced triple growth in the number of buy-to-let completions during 2021.

A breakdown of the percentage growth of buy-to-let rental properties in UK towns and cities in 2021

The growth rate was almost double (95%) in London in the same period, compared to 70% for Cardiff, and 64% for Nottingham.  

Buy-to-let property statistics 

Terraced housing was the most common type of property owned by UK landlords in Q3 2023. Six in 10 (60%) own this type in comparison to half (50%) for individual flat units, and 44% for semi-detached houses. Almost one in five (18%) landlords own houses in multiple occupation (HMO). 

The least popular options are short-term/holiday lets (4%) and bungalows (9%).

A breakdown of UK buy-to-let properties by housing type

Buy-to-let stats show that terraced housing ownership has increased by 6% since 2022, when just 54% of landlords owned this property type. The ownership of individual flats and detached houses increased by 3% and 2%, respectively, over this period, while ownership of HMOs fell by 3%. 

What is the minimum EPC rating for a buy-to-let property?

Under the current guidelines, landlords must ensure that rental properties have a minimum EPC rating of E before advertising and letting their property to tenants. 

Green mortgages are also available on the market to offer buyers an incentive to make their property more energy efficient.  

However, you can register for an exemption if your property doesn’t meet certain requirements, such as:

• If you exceed the maximum cost cap for improvements (£3,500 per property, including VAT, and any outside funding, such as grants) 

• If any work would damage or devalue the property (with evidence from a qualified surveyor)

• An inability to obtain third-party permissions.  

Any exemption is valid for five years, and a temporary six-month exemption is available for new landlords. 

A proposed government plan was put in place to increase the minimum EPC from E to C. This was expected to come into play from:

• 1 April 2025 for new tenancies.

• 1 April 2028 for existing tenancies. 

However, on 21 September 2023, Rishi Sunak announced that the government would no longer be going ahead with these proposals.

The cost cap is also predicted to rise, from £3,500 to £10,000 per property. According to the UK Government, this would sufficiently bring 90% of D-rated properties, and 60% of E-rated properties, up to a C-rating. 

In addition, the UK Government is expected to introduce a ‘fabric-first policy’, which would regulate the order in which work is carried out. Improvements to the fabric of the building (such as insulation, windows, and doors) would be required before additional measures, like new heating systems, are installed. 

UK average landlord salary statistics

As of Q2 2023, the average buy-to-let portfolio size for a UK landlord stood at 8.6 properties. This represented a rise of 13% from Q1 2023, when the figure stood at 7.6 and was the highest total recorded since Q1 2020.

Alongside this, the average number of tenants per landlord stood at 10.5 in Q2 2023, up from 9.6 in the previous quarter – a rise of 9.4%.

Recent buy-to-let statistics found that the average landlord portfolio was valued at £1.65 million in Q2 2023 – an increase of around 100,000 from Q1 2023. When averaged across the 8.6 properties that make up the average portfolio, this results in the typical rental property being valued at £191,860 – down by more than £12,000 from Q1 2023.

A regional breakdown of the average landlord portfolio size and value across England and Wales

Landlords in Wales have the lowest average portfolio value, with an average total of just over £1.1 million across 7.6 properties. This means that Welsh landlords typically have portfolios worth 58% less than those in Central London, and 39% less than the South East.

Wales is followed by the East Midlands (£1.37m) and North West (£1.39m), which have the second and third lowest average values, respectively. Despite having the joint-second highest average number of properties per landlord (11.3), those in the North West have average portfolios worth around a quarter (23%) less than those in the South East.

Average buy-to-let yield by region

The latest buy-to-let statistics found that Welsh landlords have the highest rental yield across England and Wales. Despite having the lowest average portfolio value, the average buy-to-let yield for landlords in Wales stood at 5.8% – 0.1% higher than the North West in second place. This suggests that the comparatively lower property value in Wales is contributing to a better rental yield for landlords. 

Yorkshire and the Humber have the third highest yield, at 5.6%, followed by three regions at 5.5% (the East Midlands, East of England, and South West).

A regional breakdown of the average buy-to-let yield for landlords in England and Wales

At the other end of the scale, landlords in central London have the lowest average rental yield in the UK, at 4.4%. Despite having the highest average portfolio value, the average yield in central London was 0.2% less than the West Midlands and 1.3% less than the North West. 

This suggests that the comparatively high average property value is contributing to a lower rental yield for landlords in the capital.

How has landlord profitability changed over time?

The number of landlords claiming they make a profitable, full-time living from letting has decreased steadily since 2020. In Q3 2020, the percentage of landlords who made a profitable full-time living from letting stood at just over a third (34%). This represented a rise of 9% from Q2 2016 (25%) and a 6% increase from Q3 2019.

By Q3 2021, this number fell to just over a quarter (27%), fluctuating between 27% and 30% throughout 2022. In Q2 2023, the number of landlords making a full-time, profitable living from letting fell by a further 1% from Q3 2021 to 26% – the joint-lowest reported figure since Q2 2016.

A breakdown of the percentage of landlords making a profitable, full-time living between 2016 and 2023

For the second consecutive quarter, the number of landlords who reported breaking even stood at 15% in Q2 2023. These two quarters are the highest figures recorded since before Q2 2016, with numbers fluctuating between 8% and 14% between 2016 and 2022.

The number of landlords making a small loss also reached a 7-year high in Q2 2023. Having fluctuated between 2% and 4% from Q2 2016 to Q1 2023, this figure jumped to 6% in the second quarter of 2023. At the same time, the number of landlords who reported making a large loss jumped to 2% in Q2 2023, having remained below 1% for the previous seven years.

What are the best areas for renting to university students?

A new Uswitch study identified the best areas for landlords looking to rent to university students, as well as the worst. 

This study involved collating data for each UK university based on: 

• Average house price of the surrounding area. 

• Average student rent per week of rental properties in the town/city (and calculating the resulting annual income for landlords).

• The percentage of students (both total and international) who privately rent. 

Finally, the universities and corresponding towns/cities were scored and ranked out of 10. The average house price and weekly rent were double-weighted in the final score, as these were deemed to be the most important factors.

According to the study, the top five UK universities for landlords to buy, and rent to students, are all located in Scotland. 

The Royal Conservatoire of Scotland (RCoS) comes in first place and is crowned the best buy-to-let area to make a purchase, with an overall score of 8.05 out of 10. It’s by no means the cheapest university city in the country to buy a property, as the average house price will set landlords back just under £200,000. However, it could generate a return of £180 a week (almost £9,400 a year). 

A breakdown of the best buy-to-let areas for renting to university students

Narrowly in second place is The University of Edinburgh, with a final score of 7.43 out of 10. Average house prices here are £125,000 more expensive than the RCoS, yet will generate £222 a week (or £11,544 a year). 

This is the second highest amount for landlord earnings in the country, beaten only by The University of Greenwich, which doesn’t even make the top 10. The average house here will set you back £691,000 – more than double compared to the University of Edinburgh – yet weekly earnings are only £16 a week (or £832 a year) more. 

The University of Cumbria, in sixth place, is the first English university to feature in the top 10. At £147,000, average house prices here are the second most affordable in the country, after Teesside University (almost £144,000), and will generate the average landlord just under £9,000 a year. 

Despite more than half of Carlisle university students (53%) choosing to privately rent, for international students it is just 3% – one of the lowest in the country. 

By contrast, of those students from London’s Imperial College of Science, Technology, and Medicine in seventh place, almost 56% of their overall student population, and 51% of international students, will privately rent – the third highest percentage in the country. However, average house prices here are around £691,000 (more than four-and-a-half times dearer than Carlisle), yet will only generate an extra £936 a year by comparison. 

A breakdown of the 10 worst buy-to-let areas for renting to university students

According to the study, Keele University ranks lowest of all UK universities, for landlords looking at buying property and renting to students. 

With a score of 1.83 out of 10, average house prices are fairly expensive around Keele University, at virtually £428,000. However, properties will only generate £111 a week (or £5,772 a year) in rent, on average, for landlords. Just over a third (36%) of its student population are renters, followed by nearly 7% of international students. 

Whilst these figures are not alarmingly low, or the worst in the country, Keele University’s final score is the product of scoring relatively low across all variables in our study. 

Brunel University, ranked second lowest, has an average house price of £691,000 – more than 1.5 times greater than Keele University. Despite only 23% of their student population turning to private renting, almost 28% of their international student body do, giving them a larger captive rent audience in comparison to Keele. 

Harper Adams University in Newport, Wales, has the most affordable housing in the bottom 10, at £227,000. Yet, average weekly earnings here are the sixth lowest in the country at £98 a week (a little over £5,000 a year). 

Buy-to-let stamp duty rates 2024

Stamp Duty Land Tax (SDLT) in England and Northern Ireland is usually paid on increasing portions of the property price when purchasing a residential property and only applies to dwellings over £250,000 in value. 

The amount paid will depend on a number of factors, including:

• When you bought the property.

• How much you paid for it.

• Whether you are eligible for tax relief or exemption. 

• The number of properties you own.

It’s worth noting that an additional 3% will be charged on top of these rates if you own another residential property. 

There are also different SDLT rules and regulations for:

• First-time buyer mortgages.

• New leasehold sales and transfers. 

• Non-UK residents.  

• Corporate bodies. 

• Those purchasing six or more properties in one transaction.

• Shared ownership properties. 

• Multiple purchases or transfers between the same buyer and seller (linked purchases).

• Companies and trusts buying residential properties.

To work out how much tax you are eligible to pay, we suggest using the Government’s SDLT calculator

Buy-to-let stamp duty rates in Scotland 2023

Stamp duty in Scotland is called Land and Buildings Transaction Tax (LBTT). New LBTT rates were introduced in April 2015, with buyers paying tax on the amount between bands, not on the full purchase price of the property. 

The current LBTT rates are as follows: 

An additional dwelling supplement (ADS) was introduced in April 2016, and now applies to all transactions involving the purchase of an additional property. This includes buy-to-let investments and second homes. 

Much like the rest of the UK, the surcharge applies to the full purchase price above an initial threshold of £40,000. From 16th December 2022, the ADS has increased from 4% to 6%.

Buy-to-let stamp duty rates in Wales 2023

From the 1st of April 2018, Stamp Duty Land Tax (SDLT) in Wales changed to Land Transaction Tax (LTT) and applies to anyone who buys a property or land over a certain price threshold in Wales. 

On 27th September 2022, the Welsh Government announced changes to the residential rates and bands for LLT, which came into power on 10th October 2022. 

The current LTT threshold is £225,000 for residential properties, if you do not own any other property.

There are different rules if you already own one or more properties. The higher rate of LTT will usually kick in when you buy a residential property worth £40,000 or more and you already own one or more other properties. 

What taxes do landlords pay?

Buy-to-let property owned personally by you

When renting out a property, you may have to pay taxes. 

If your profits are £6,725 a year or more, and what you do counts as running a business (such as being a landlord), you’re required to pay Class 2 National Insurance. 

The first £1,000 of your income from property rental is tax-free (known as your property allowance). Anything above this has to be declared to HMRC. 

Buy-to-let property owned by a company

For companies, the rental income is calculated exactly the same as any other business income. However, there are different tax rules for residential and commercial mortgages, as well as furnished dwellings and those with a holiday-let mortgage.

You and your company, for example, must pay tax on the profit you make from renting out the property after deductions have been made for ‘allowable expenses’. This refers to any expenses associated with the day-to-day running of the property, such as:

• Fees (for letting agents, accountants, and legal purposes).

• Buy-to-let buildings insurance.

• Utility bills. 

• Rents, service charges, and maintenance/repair costs.  

• Council Tax. 

• Other ancillary costs (such as phone calls, stationery, and advertising). 

Also, depending on your circumstances, government support in the form of tax relief may also be available to help reduce costs. 

For more information, you should consult the latest government advice for renting out your property.

Buy-to-let income tax rates 2024

For the 2024-25 tax year, landlords will pay 20% tax on buy-to-let income between £12,571 and £50,270, according to buy-to-let landlord statistics. Once this upper threshold has been exceeded, the rate increases to 40%. 

In April 2023, the additional rate tax threshold was reduced from £150,000 to £125,140.

Capital gains tax 

Different rates of pay are in place for residential properties compared to other assets. 

If you’re a higher or additional rate taxpayer, then you’ll pay:

• 28% on your gains from residential property.

• 20% on your gains from other chargeable assets.

If you’re on a basic rate of tax payment, the rate will depend on the size of your gain, your level of taxable income, and where your gain is from (i.e. residential or other assets). 

If you fall within the basic income tax band, then you’ll pay:

• 10% on your gains (or 18% on a residential property).

• 20% (or 28%) on any amount above the basic tax rate.

Buy-to-let investment statistics 

A landlord’s level of experience is split into two categories: 

• Non-portfolio (fewer than four buy-to-let properties).

• Portfolio (more than four buy-to-let properties). 

Almost 40% of landlords have been operating lettings for between 11-20 years – the highest proportion of the surveyed landlord demographic. 

Around a third (30%) of portfolio landlords have been letting properties for 21-30 years. This is roughly the same percentage of non-portfolio landlords who have rented to tenants for 0-5 years.

In Q1 2022, a typical UK landlord held a portfolio with an average of eight properties, totalling about £1.38 million. Each property was valued at an average of £172,625, generating £635 per calendar month. In terms of gross annual rental income, this would constitute £61,000. 

A breakdown of the number of properties owned by UK landlords and tenancies

Buy-to-let landlord statistics obtained from Paragon show less than half (43%) of UK landlords rent out one property, compared to 39% who have between 2-4 properties on their books. The numbers then drop fairly quickly, with more than one in 10 (11%) owning between 5-9 properties, and less than one in 20 UK landlords (4%) responsible for 10-24 lettings. In contrast, the figures for companies and organisations are far more evenly distributed. Almost a third (32%) have between 2-4 properties on their books, followed by a fifth who only have one. 18% have between 5-9 properties to rent, compared to 16% who have between 10-24. Around one in 10 (11%) letting agents have 25-100 rental properties in their portfolio, with 3% having in excess of 100. 

Landlords who have been letting out longer often have a larger portfolio. Over two-thirds (68%) with 11+ years experience had two or more properties on their books, compared with 45% of those with four to 10 years. Comparatively, this was less than one in five (19%) for those with three years or less experience in the buy-to-let market. 

A breakdown of the percentage of landlords in the UK broken down by years of experience

Over half (53%) of landlords have 10 years or more experience in the PRS, compared to around one in nine (8.6%) who have been doing the role for less than three years. 

One of the main advantages of a buy-to-let mortgage is that they’re often provided as an interest-only mortgage. This allows lower monthly repayments compared to a repayment mortgage, providing landlords with more freedom and financial flexibility. 

Perhaps unsurprisingly, therefore, buy-to-let landlord stats show borrowing is popular with property investors, with almost two-thirds of landlords choosing at least part of their portfolio through this method. More than a third (36%) have opted to self-fund or purchase the property outright. 

A breakdown of the percentage of landlords in the UK broken down by source of funding

The typical number of buy-to-let mortgages per borrowing UK landlord is 4.5, increasing to 11.1 among those with 11 properties or more. In terms of buy-to-let borrowing, the average UK landlord owed almost £420,000. 

In addition, according to ONS figures, one in three (33%) landlords with a buy-to-let mortgage owned just one property, in contrast to nearly two-thirds (62%) with other types of loans. Incidentally, just over half (53%) of landlords with no loans were single-property owners.

A breakdown of the percentage of landlords in the UK who agree with various statements

Only 14% of respondents agreed that there was enough information online to make their own decisions. This implies that 86% don’t believe online information is sufficient on its own, and might help to explain why almost three-quarters (73%) of landlords supplement online info with their own research before making any decisions. Likewise, only 13% fully relied on the services and advice of their financial advisers, suggesting landlords tend to get their information from multiple sources before deciding to purchase a buy-to-let property. 

A breakdown of factors that influence a landlord’s decision-making and the percentage who selected each factor

According to a survey by Paragon Bank with their member landlords, more than half (54%) of landlords are influenced by interest rates when it comes to buy-to-let purchases. 

Four in every 10 landlords also indicated that recommendations by an intermediary was an important deciding factor in their decision-making process.

Around one in six (15%) said they would make decisions based upon the reputation of the lender, compared to just over a quarter (27%) who said they were guided by their previous experiences with a lender, in this case, Paragon.

A breakdown of the percentage of landlords who use various media outlets for industry updates

In the face of a dynamic property market, UK landlords need a space they can turn to for industry updates, and to exchange knowledge within their communities. Many are turning to social media to achieve this. 

Facebook appears to be the most popular option (38%), followed by just a third (32%) opting for LinkedIn. Nearly a fifth (19%) will head for Instagram, whereas around one in six (15%) will use Twitter. 

However, for news updates, landlords are likely to turn to news outlets, with over three-quarters (77%) choosing the BBC, followed by almost a third (31%) for Sky News. 

A breakdown of the business topics UK landlords were most interested in

Landlords were also asked by Paragon Bank as to what business topics they were most interested in reading about. Tax planning was the most popular, with almost half (48%) selecting this option. This was followed by finance and investment (38%), and market conditions and trends (37%).