High-end investors are accelerating the bulk purchase of rental properties…

Affluent investors spend an average of £1.2million on group purchases of rental accommodation, according to one finance company.

Analysis shows that this typical bulk purchase is for multiple units with an average of 6.4 bedrooms in total, bringing deals to £196,000 per bedroom and an expected return of 2.9%.

Octane Capital, the company making the claim, does not specify how many investors operate at this level.

But it says London is the busiest area of ​​the market despite being the most expensive with portfolios containing an average of 3.6 rooms at an average total price of £2million – and a meager return of just £1 .4%.

In the West Midlands, investment portfolios cost an average of £1,027,722 and contain an average of 5.1 rooms, which equates to £201,000 per room, and in the South East investors pay £1.4m £ for an average of 7.7 rooms, which equates to £178,000 per room.

The most affordable investment portfolios are in the North East, where investors pay just over £1m for portfolios containing an average of 9.7 rooms, which equates to £104,000 per room. As a result, the North East is home to the highest yield – but even then it is only 4.5%.

A spokesperson for Octane said: “Portfolio investing offers advanced investors a much faster route to scale their portfolio and, as is often the case when buying in bulk, this can lead to a greater value per unit. But it is also the convenience of this approach that appeals to many, allowing them to acquire several properties in a single transaction.