Earlier this year, the Government released the results of the new Private Landlords Survey for 2018. An important snapshot of the country’s rental market, the survey offers valuable insight into the current trends influencing the world of rental property.
Most landlords are private individuals
The results of the Private Landlords Survey showed categorically that the vast majority of landlords are private individuals. According to @4_Walls, “94% of landlords rent property as an individual, 4% as part of a company and 2% as part of some other organisation.”
This is despite the fact that a large number of landlords opted to form companies in order to reduce the impact of new taxes that are currently being introduced. For most people, renting out property as an individual is still the easiest and most affordable option.
Half of properties are let out by just 17% of landlords
Although the survey showed that 45% of landlords own just one rental property, it also revealed that over half of private rental sector tenancies are owned by just 17% of landlords. This small percentage of property owners have at least five homes each, making them a powerful force in the world of renting.
In fact, the survey showed that the number of landlords with just one property was actually declining. Between 2010 and 2018, the number of individuals that owned just a one-tenanted home dropped from 75% to just 48%.
Landlords believe property makes a great investment
The survey showed that the main reason people become landlords is that they believe in the investment potential of UK property. In fact, 46% of respondents stated that they became landlords because they preferred the potential returns offered by property to other forms of investment.
Many also chose to put their money in property in order to build a pension pot and prepare for retirement, something that’s becoming increasingly important in today’s uncertain financial climate.
Landlords are split when it comes to growing their portfolios
Although around 50% of respondents said they planned to add to their property portfolios over the next two years, the same number of landlords said that they had no plans to buy any more rental properties. Landlords who do want to buy more tenanted homes need to ensure that they’re well aware of all the rules and regulations that impact on the sector.
The more they rely on monthly rental income, the more important it is for landlords to understand the tax implications of owning rental homes and the changes that are coming into force in the next few years.
Becoming a landlord can be a great investment. As well as netting you rental income every month, it also offers the chance to own an asset and build a valuable portfolio for the future. Find out more about the mortgages available to landlords, and the rules and regulations affecting the industry, by taking a look around our site today.
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Written by: Cambridge Web Marketing