The number of part-time or ‘amateur’ landlords – those for whom rental income is a supplement to their day job, rather than a full-time business – has reached record levels, according to new research from the National Landlords Association (NLA).
Part-time landlords now make up than 70% of the private rented sector, according to their findings. One in five of these landlords are feeling confident enough in the rental market to add to their portfolio this year.
The average part-time landlord was found to let four properties and generate an annual gross rental income of £31,000. About a quarter of this income is spent on property or portfolio related maintainence costs.
More than four in ten part-time landlords have used buy-to-let finance to fund their lettings portfolio. Although 40% agree that access to buy-to-let mortgages is getting easier, four out of five landlords say that the market would benefit from even more buy-to-let lenders and increased competition. BTL lending has increased by almost a third (32%) compared to last year, but still is not satisfying the demand.
Although many in the lettings sector are riding a wave of enthusiasm, it is important to thoroughly understand the challenges and responsibilities of managing and maintaining homes for people on top of a day job.
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