Member Article

The Growing Number of Buy-to-Let Landlords

The Private Rented Sector is the fastest growing segment of the housing market in the UK with “Private landlords putting an estimated £20 billion into providing homes in the UK” according to Carolyn Uphill, chairman of the NLA. The current housing shortage in the UK is pining for the growth that buy-to-let landlords can potentially deliver. Whether a full time or part time landlord, any and all additions to property portfolios can provide residence for renters such as commuting professionals right across the board to housing for families.

New figures from the NLA show that part time landlords now make up more than 70% of the sector, and a fifth of these landlords are massively encouraged by the current rental market. “A typical part time landlord has on average four properties and generates an annual gross rental income of £31,000”1. The Private Rented Sector itself has doubled in size over the past 20 years, and looks set to do the same over the next 20 years. “40 per cent of all landlords feel it is now easier to access buy-to-let mortgages, whilst four in 10 have used buy-to-let finance to expand their portfolio”2. This news is incredibly encouraging for the residential property market, and the government has already recognised the importance of the rented sector by setting up schemes such as the £1 billion build-to-rent fund. Further investment would create a more dynamic market and boost the economy through the generation of jobs throughout residential projects, thus fuelling the construction industry and boosting the number of properties on the rental market.

Not only does the rise in UK Landlords provide a positive outlook for the economy, but it also looks promising for the housing market alone as well. The increase in demand for housing has fuelled the supply, for rented accommodation, leading to the rise of full time and part time landlords.

The NLA recently launched new guidance to support those who wish to expand their investment portfolio and take on the role of a landlord, whilst also remaining in employment. The number of investors interested in this route is quickly growing, showing that seeking the right advice and guidance can help you to make the most of your money, regardless of your budget.

“Being a landlord can be very rewarding but it’s vital that anyone considering a move in to buy to let, or indeed looking to expand their portfolio, is thoroughly researched and aware of what it involves”3.

1 Property Wire

2 Residential Landlord

3 NLA in Property Wire

This was posted in Bdaily's Members' News section by ERE Property .