High Number of Landlords Entered Sector by Accident
April 7, 2015 |
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A survey by the National Landlords Association has found that almost a quarter (24%) of landlords – approximately 360,000 – came into the residential private rental market either by accident or unintentionally.
The survey asked landlords why they first entered the buy-to-let market. For 11%, it was down to chance, such as the inheritance of a property. For 5%, it was down to difficulties selling their property; another 5% entered because they acquired an extra property, such as when they met a spouse or partner; and 3% did so because of relocating for work , either home or abroad.
The highest proportion of accidental landlords was found in London (31%), with Wales close behind (29%), and the East of England and Yorkshire slightly further back (27%). With just 15%, the North West was found to have the lowest proportion of landlords who got into the business unintentionally.
It was also found that 30% of landlords with only a single property in their portfolio only break even, or may even make a loss. The NLA attributed this to the likelihood that landlords who enter the sector accidentally often lack the knowledge to run their business successfully.
NLA Chairman, Carolyn Uphill, said: “While a buy-to-let property can provide a steady return, you’re in business to provide a home for someone else, so you need to know your obligations and make sure you have a plan to make a success of it all.”