Most UK Landlords have just one property
Tuesday 23 August 2016
The majority of landlords see renting out second homes as a nest egg rather than a business, research has found.
The information, compiled by BDRC and the London School of Economics, found that there is a growing trend towards people adding to their portfolios and treating it more like an enterprise.
In the last six years it was found that the number of landlords with only one property fell from 78% to 63%. Also, the number of those with between two or four properties shot up from 17% to 30%.
While the validity of any data can be questioned, it is thought that the trend is leaning towards people in the buy-to-rent sector acquiring more properties.
The Council of Mortgage Lenders (CML) would suggest the data is reflected in the number of loans for buy-to-let house buys, which has rocketed by 19% each years since 2010.
Meanwhile, it has been claimed that the money from rented homes is becoming an increasingly significant income for landlords, although the CML claims rent still makes up less than half of a landlord's total income.
Around 90% of second home owners claim this, which is identical to a similar survey conducted in 2010. But it could be that the increasing demand for rental properties is reflected in the number of landlords now receiving some income.
Around 21% were getting nothing in 2010 because their second homes were not lived in, but that has fallen to just 5%.
A writer for online site, Property Wire, said: "Overall the report says that while it looks like the typical landlord is still an individual running a rental business on the side, there appears to have been a gradual expansion of these side business, which, given the rise in demand for rented accommodation, should come as no surprise.
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