The proportion of part-time or ‘amateur’ landlords – those who supplement their day job with rental income – has reached its highest ever level according to research findings from the National Landlords Association (NLA).
The NLA says that part-time landlords now make up more than 70% of the sector. The findings also show that a fifth of these landlords are so encouraged by the current rental market that they intend to add to their property portfolio this year.
It says that 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 four 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.
These figures reflect the increase in buy-to-let lending last year, up 32% to £20.7 billion. However, 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-time or amateur landlords 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”.
The two new guides from the NLA are:
• Considerations before investing
• Expanding a portfolio
To access the guidance, call 020 7840 8937 or visit www.rentinvest.uk.