According to the latest research conducted by investment firm easyMoney, there are currently 884 property portfolios available for purchase in Great Britain. These portfolios have an estimated average price of £1.2 million, presenting a range of investment opportunities across the country.

London: The Investment Hotspot with a High Price Tag

London emerges as a prime location for investors interested in ready-made property portfolios. The city holds the highest number of portfolios for sale, with 166 available, accounting for 19% of the national total. However, it’s important to note that London is also the most expensive region. The average portfolio price here is nearly £2 million.

Rental Yields: A Closer Look

Despite the high costs, the average rental yield in London is relatively low at just 2.1%. This yield is the second-lowest in the country, slightly higher than Wales, which stands at 2%. One contributing factor is the smaller average portfolio size in London, with an average of 4.9 bedrooms.

Regional Analysis: Comparing Costs and Yields

• South East: The average portfolio cost is around £1.4 million.
• Scotland: Portfolios average at £1.2 million.
• East of England: The average cost is £1.1 million.
• East Midlands: This region offers the most affordable options, with an average portfolio cost of £879,012.

The Appeal of Ready-Made Portfolios

According to Jason Ferrando, CEO of easyMoney, ready-made property portfolios can be an attractive option for investors. They offer a quicker and less labor-intensive path compared to building a portfolio from scratch. Much of the groundwork, such as property acquisition and tenanting, is already completed.

Financial Considerations

Investing in a portfolio requires significant upfront capital. Additionally, the ongoing management and maintenance of multiple properties can be demanding, both financially and in terms of effort. This aspect is crucial for investors to consider, as it impacts the overall return on investment and the amount of work required to maintain the portfolio.

Conclusion

Investing in property portfolios in the UK presents both opportunities and challenges. While cities like London offer prestige and a large number of options, the high prices and lower yields might not suit every investor. Regions like the East Midlands offer more affordable entry points, but the overall return must be weighed against regional market dynamics. As with any investment, thorough research and consideration of one’s financial capacity and long-term goals are essential before diving into the property market.