Property buyers invest in full portfolios over single purchases

Property buyers are seeking value for money as they spend an average of £1.2m to buy property in bulk rather than as a single investment.

Such property packages come with an average of 6.4 bedrooms, at £196,000 per bedroom. This offers an average yield of 2.9% on these ready-made portfolios, research by specialist property lender Octane Capital, found.

London is the most active area for purchasing ready-made property portfolios and accounts for 18 per cent of the national total. 

But the capital is also home to the highest price per bedroom. A property with an average of 3.6 bedrooms at a total average price of £2 million means each bedroom costs £556,000, giving an average yield of 1.4 per cent.

In the West Midlands, investment portfolios cost an average of about £1m and have an average of 5.1 bedrooms, coming to £201,000 per room. In the South East, £1.4m gets investors an average of 7.7 bedrooms, equivalent to £178,000 per room.

The most affordable investment portfolios are in England’s North East where investors are just over £1 million for portfolios containing an average of 9.7 bedrooms, coming to £104,000 per room. 

“Portfolio investment offers advanced investors a far quicker path to scaling their portfolio and, as is often the case when buying in bulk, doing so can result in securing a greater level of value per unit,” said Octane Capital CEO Jonathan Samuels.

“But it’s also the convenience of this approach that appeals to many, allowing them to acquire multiple properties in a single transaction.”