Over the past few weeks we’ve seen a raft of statistical data emerge from the BTL sector, some of which gives great insight, notably around profitability, yield and landlord intentions.

The latest Q3 Landlord Panel research from BVA BDRC outlined that profitability remains largely unchanged in Q3, with 84% of landlords currently making a profit from their lettings activity. It continues to be the case that only a very small minority of active landlords (3%) are making a financial loss of any kind. The tipping point for becoming a professional landlord is typically around 11 properties which is the threshold at which over half of landlord respondents begin to derive a full time living from their letting activity.

It also outlined that the average rental yield achieved edged up to 5.6%, up marginally from the nine-year low recorded in Q2 2019. There was suggested to be a 1% differential between the highest yield generating regions, the East Midlands and Yorks & Humber at 6.1%, and the lowest, Central London at 5.1%. Remarkably, it remained the case that over one in four landlords don’t even know what their average rental yield is.

Another section of this research highlighted that an equal proportion of landlords bought and sold in Q3 2019 (7%). Those in Yorks & Humber were most likely to have bought in the last quarter (15%), whilst those in the North East, facing the toughest trading conditions, remained most likely to have sold (16%).

On a highly positive note, all regions were said to be seeing a higher proportion of landlords looking to buy than sell. The North West was predicted to be the region most likely to see purchasing activity in the next year, the South East most likely to see sales. In addition, those managing mid-sized portfolios (4-19 properties) had the brightest outlook in Q3 with the typical landlord suggested to have been letting property for 18 years and intending to continue letting for a further 12 years.

So, what does this data actually mean for landlords and the intermediary market?

Most of this is self-explanatory but it doesn’t harm to underline that despite the well-publicised challenges facing landlords, the vast majority are still looking to maintain a presence within the BTL sector and profiting from their portfolios – even those who don’t even know their average yields! And, whilst the buying/selling aspirations of landlords differ on a regional basis, the overall consensus appears to be that more landlords are looking to buy than sell.

This means there is plenty of room for optimism as more funding lines are emerging, lending appetites are growing, and increased competition is continuing to drive down rates, especially within the limited company product area. Good news for everyone, and long may it continue.