Latest research from an independent consultancy shows that in spite of newspaper reports about the burgeoning buy to let business, many professional landlords are feeling the pinch. Research by BDRC Continental, who is the largest independent market research consultancy in the UK, shows a substantial rise in the number of portfolio landlords making a loss. According to them the fourth quarter of last year showed that the number of portfolio landlords making a loss increased from 1% during the previous quarter to 8%. They classify portfolio landlords are those owning 20 properties or more. Their research also showed this group of landlords enjoyed the highest rental yields at around 7% while rental yields for all landlords dropped during the last quarter of 2011 to 5.9%, compared to 6.7% in the previous quarter.

Apparently rental yields for all landlords dropped to their lowest level for the year during the last quarter, in spite of nearly half of all landlords having increased rents for tenants during the previous year. Most landlords remain optimistic about the private rental sector and this may be at least partially due to the fact that fewer landlords are experiencing void periods. Although around half of all landlords have had tenants who have fallen into arrears, the numbers concerned about rising arrears during the coming year is almost unchanged. BDRC has pointed out that it's little surprise to learn that portfolio landlords are experiencing a more of a decline in profits and a greater increase in costs, due to the continuing difficult economy.