NLA report Amateur Landlords reach 70% of the Private Rented Sector.
Here at Lawson’s, we are finding a larger number of landlord enquiring about our Buy to let and property acquisitions, as they are looking to invest in property again, in many cases after taking a bit of a break from buying property, so we wanted to see if this was a nationwide trend.
A recent report released by the NLA (National Landlord Association) reports that 70% of all the properties are owned by part time landlords, investing in property to bolster their income.
This is the highest level it has been at since records began. They continue to report that the average number of properties a landlord owns is four and these generate on average an annual rental income of £31,000 per annum, however from this income, there will be costs involved of maintenance, mortgages and management fees.
40% of landlords reports to have a buy to let mortgage, and it is felt that it is getting easier to find buy to let funding as the requirements have eased, since the initial tightening in 2008, following the financial crisis.
This is further reflected by the increase in lending reported this year which is said to be up by 32%, to a huge £20.7 billion.
The rental sector and the nation as a whole, desperately needs more housing, as the Private Rented Sector tries to house the nation, a problem caused by many factors including the council selling off homes and not building for the last 20 years, the home ownership market becoming out of reach for many young people, and the average age of the first time buyer now at 38, there generally appears to be for whatever reason a huge interest in privately renting now.
The most commonly sought after property in the Wolverhampton Area is currently a 2-3 bed house.