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Number of 'amateur' landlords reaches record levels

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Number of 'amateur' landlords reaches record levels


Published by Anonymous for in Housing

Number of 'amateur' landlords reaches record levels Number of 'amateur' landlords reaches record levels

The number of part-time or ‘amateur’ landlords has reached its highest ever level, according to new research.

The National Landlords Association (NLA) says that part-time landlords now make up more than 70% of the private rented sector (PRS).

The findings also show that a fifth of 'amateur' landlords - defined as those who supplement their day job with rental income - are so encouraged by the current rental market that they intend to add to their property portfolio this year.

A typical part-time landlord has on average four properties and generates an annual gross rental income of £31,000. However, a quarter of this income is spent on property or portfolio related maintenance costs.

More than 4 in 10 of these landlords have used buy-to-let finance to fund their lettings portfolio, and almost 40% of all landlords agree that it’s getting easier to access buy-to-let mortgages - the figures reflecting the increase in buy-to-let lending last year, up 32% to £20.7 billion.

Nevertheless, four in five landlords agree that the market would benefit from more buy-to-let lenders and greater competition.

The NLA has launched new guidance to support the growing number of part-timers who are considering a new investment or planning to expand their portfolio.

Carolyn Uphill, chairman of the NLA, said: “Private landlords put an estimated £20bn into providing homes the UK and we know that more and more people are looking to buy-to-let as an alternative means of saving for the future.

“Being a landlord can be very rewarding but it’s vital that anyone considering a move in to buy-to-let, or indeed looking to expand their portfolio, is thoroughly researched and aware of what it involves.

"A part-time landlord typically has a day job so it can be a very challenging task to keep on top of managing and maintaining homes for people whilst juggling the demands of daily life.

“As the leading landlord association we have a duty to ensure that new and prospective investors identify as landlords and know they can rely on us as a source of valuable information and advice. Our new guidance does just that and will provide everything you need to consider when looking for a new investment or expanding your portfolio, as well as tips on how to run your lettings business effectively and profitably."


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