Nearly one in ten UK adults are would-be landlords
Nearly one in ten (9 per cent) of UK adults have shown an interest in taking out a buy-to-let mortgage in 2018, creating the possibility that an extra 4.8 million people could become landlords in 2018.
Of those taking out or considering a buy-to-let mortgage, over a third (35 per cent) said a change in income had inspired them to do so, while 29 per cent remain encouraged by the current opportunities to enter the market, new research from Sainsbury's Bank revealed.
A quarter (25 per cent) were considering a buy-to-let mortgage after receiving an inheritance. Yet the research indicates that two in three (64 per cent) of UK adults don’t know what consumer buy-to-let mortgages are.
When it comes to purchasing a property, over half (51 per cent) of potential landlords have considered buying a house, 46 per cent have considered purchasing a flat, with 44 per cent having considered buying new builds.
Richard Truman, Head of Operations at Simple Landlords adds, “Clearly, being a landlord is still an attractive investment prospect for many – despite the ongoing changes in the sector. But it’s concerning to see how many aren’t clued up about specialist mortgages. At our end, we’ve found that 1 in 4 landlords also don’t have specialist insurance, and that too is cause for concern.
“The property market is complex, and increasingly the most successful landlords are those running their portfolios as investment businesses. Getting the right financial services in place is key.”