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Majority of UK landlords are part-time with one property
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
New research has revealed that the typical British landlord still believes their role to be part-time, with the majority owning just one rental property.
In addition, a higher number of landlords manage their portfolio as a private individual.
Trends
The investigation from the Council of Mortgage Lenders also suggests that there is a growing trend towards larger portfolios. This is despite rents making up less than half of a landlords’ overall income.
Rental income however is becoming a very significant form of cashflow for many part-time buy-to-let landlords.
This year, 87% of landlords questioned in the survey said they managed their portfolio as an individual or a couple. This is fairly unchanged from the 89% recorded in 2010.
For those reporting operations as a group or company, the figure stood at 14%, from 11% 6 years ago.
A huge 95% said they do not consider buy-to-let investment to be their main occupation, up from 92% in 2010.
Majority of UK landlords are part-time with one property
Larger
While most landlords surveyed own just one rental property, a trend towards investing in larger portfolios is growing. Between 2010 and 2016, the proportion of people managing one property slipped from 78% to 63%.
During the same period, buy-to-let investors managing between two and four properties increased from 17% to 30%.
Rental receipts
Further data from the report shows that rental income makes up less than half of a landlord’s total income. 90% of investors questioned said that this was the case, almost unchanged from 2010’s results.
The total of landlords receiving no rent, mostly due to a property being unoccupied, has fallen sharply from 21% to 5% during the last six years. In the same timeframe, the number of landlords receiving around a quarter of their overall income through rents rose by 7%.
The report certainly seems to reveal to that typical landlord is an individual running their business on the side. Given the ever-growing demand for rental accommodation, the gradual expansion of these businesses highlighted should come as little surprise.
