The buy to let market is still an attractive investment option, according to new research.
Despite reporting that tax and regulatory changes are placing pressure on the sector, it continues to be seen as a viable and attractive investment opportunity. Even accidental landlords, who enter the sector after inheriting a property, are opting not to leave, with many adding to their business by expanding their portfolio.
New research from Foundation Home Loans found that 17 per cent of existing landlords plan to increase the size of their portfolio in the next 12 months. A growing number of these are ‘accidental’ landlords, with 14 per cent describing themselves as having joined the buy to let sector by ‘accident’ through circumstances such as marriage or relocation. 9 per cent inherited the property that they now let out.
However, of those surveyed, 23 per cent became a landlord solely for financial reasons, whilst 21 per cent planned to use the income they earned in order to fund their retirement plans.
21 per cent described themselves as full-time landlords and do not have another job. The largest proportion of these are located in London, while 19 per cent say that they have a part-time job. This leaves 60 per cent who are landlords while also having a full-time job.
Marketing director at Foundation Home Loans, Jeff Knight, explained: ‘With so much regulation introduced into the buy to let market in the last few years, it could be easy for those who are unplanned landlords to make a swift exit rather than stay and navigate the red tape. That said, no matter how they found themselves owning rental property, it’s clear landlords are interested by the buy to let market for a variety of reasons and objectives, financial or otherwise. Considering the rental sector forms an increasingly important part of the housing mix, landlords need to be armed with the right advice. Our findings indicate plenty of the accidental landlords are looking to expand their portfolios and remain invested in the market, which will ultimately have a positive impact on quality and choice for renters.’
Source: Residential Landlord