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Half of landlords rely on portfolio for income
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
With the buy-to-let market continuing to surge on the back of low savings rates and stock market volatility, new research suggests that nearly half of investors rely on their property portfolio to provide a large supplement to their paid income.
A study of over 500 landlords from PropertyLetByUs.com found that 40% gain an income from their buy-to-let investment, with half stating it is their main source of money.
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The study suggests that just over one-third of buy-to-let landlords have a full-time job, with 5% working part-time. One on six working landlords said they would like to give up their jobs to work full-time.[1]
Additionally, the research found that half of buy-to-let landlords have a LTV of 20%, with 36% of landlords having a LTV of 40%. One of five were said to be enjoying annual yields of between 15% and 30%, with a quarter having yields between 5-10%.[1]
Half of landlords rely on portfolio for income
‘Buy-to-let continues to provide an excellent return on investment, with many landlords able to take an income, as well as enjoy the capital growth of the property,’ commented Jane Morris, Managing Director of Property Let By Us.[1]
She continued by saying that, ‘recent research from the HomeLet Rental Index shows that rents across the UK are 10.2% higher than a year ago. The average rent on a tenancy signed in the UK during the first quarter of 2015 was £902, compared to £819 for tenancies signed during the first quarter of 2014.’[1]
‘Mortgage rates remain at record lows which is helping buy-to-let landlords achieve higher yields. So for potential investors with enough money to raise a big deposit, buy-to-let is highly attractive, compared to the low savings rates and stock market volatility,’ she concluded.[1]
[1] ‘Landlord & Buy-to-let’ Issue 59 June 2015
