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Meet the emerging landlord: younger, better informed and strategic

Friday 20 April 2018

It’s hard to remember a time when the legislation and taxes had changed as much for landlords than they have in the last few years. 

But where there is change, there is opportunity.

At Simple Landlords Insurance we want to understand our customers – their worries, aspirations and plans – so that we can support landlords through these changes.
With this in mind, we today publish a big piece of research which reveals how landlords are evolving in response to legislative change.

We asked 500 landlords of all shapes and sizes about the market and their plans and the results make an interesting read

The headline finding is that the average landlord demographic is changing.

The majority of landlords are single property owners, but the majority of housing stock in the UK is owned by bigger landlords. Our research suggests it is those bigger landlords who are feeling best about the future and planning to further expand. 

Some 38% of the landlords with two or more properties said they plan to buy at least one more in the next year – compared to 11% of landlords with single properties who are planning to expand. 

Meanwhile, 30% of single property landlords plan to sell, compared with just 8% of landlords with more than two properties. 

The emerging community of landlords are generally young, well-informed, deliberate investors.  Our research found younger landlords own more properties on average: for the 25-34 bracket, the average portfolio size was 2.16, while for 45-54 year olds, it dropped to 1.48. 

As well as being bigger, younger and more professional, the emerging landlord is also investing differently, and diversifying their portfolio. Holiday lets attracting the highest proportion of new entrants to the market - 22% of these are landlords in their first year, with flats right behind with 16% new entrants. 

The owners of HMOs in particular are also feeling optimistic, with 43% in buying mode and just 4% planning to shrink. 

Carl Agar, Founder of the Home Safe Scheme, Managing Director Big Red House and Simple Landlords resident blogger had this to say about the findings: 

 “Your ‘traditional’ landlord is seeing all of these new rules imposed and their returns drop. Meanwhile those new to the market are comparing those returns to what they’d get putting their money into a savings account – and it actually looks pretty good. They’re seeing opportunity, and building the rules, regulations and changes into their business model.

“Personally, I’m looking forward to a more professional and more prosperous private rental sector, driven by a new breed of landlord investor.”

Tom Cooper, Director of Underwriting, Simple Landlords Insurance, said: “From Section 24 to Right to Rent, increased stamp duty, capital gains tax, regulation and licensing, you’d be forgiven for thinking it was all doom and gloom in the private rented sector. 

“But our evidence shows there are landlords adapting to the changes and emerging like phoenixes from the ashes. We wanted to find out more about them.

“At Simple, we believe the right insurance can be the safety net that allows landlords to develop their strategies and their businesses for the future. Financial services need to keep up with the market and develop products that can grow with the landlords set to survive and thrive.

“The research reveals it is the landlords positioned at the larger end of the market – or aspiring to get there – who are least fazed by changes, and best poised to take advantage of increasing demand, bargain stock being sold off, and stable house prices."

Read the report here


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We want to add value to landlords with interesting news and views! Our Hub includes information and opinions on the housing market from a variety of expert sources – please just be aware it doesn’t always reflect Simple’s opinion, or the products and services we provide.

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