Lease tenant rental

Thinking of becoming a landlord? So are 4.8 million other Brits

A surprising number of people in the UK have considered embarking on property investment in 2018, and it turns out most landlords don’t give up their day job.

Despite recent concerns that the buy-to-let sector is less desirable for some investors now than it once was, around one in 10 UK adults, which equates to about 4.8 million people, have considered taking out a buy-to-let (BTL) mortgage this year, according to statistics from Sainsbury’s Bank Mortgages.

The figures show that the number of people becoming “accidental landlords“, sometimes through inheriting a property or a sum of money large enough to invest in a property, is also high, with 25% citing this change in circumstance as their main reason for considering a BTL mortgage.

A further 35% said that a change in income was the main reason behind them looking into becoming landlords, while 29% believed there were good opportunities in the market. Sainsbury’s Bank has recently increased its mortgage range with new products for the buy-to-let market, including new purchases as well as remortgaging.

David Buxton, head of banking at Sainsbury’s Bank, said: “With demand for rental properties showing no signs of slowing down, we’re delighted to be able to help landlords by offering competitive mortgages and advice to help them best manage their investments.”

Property investment to supplement your income

Meanwhile, research from MakeUrMove looking into the profiles of today’s average UK landlord has revealed that two-thirds use buy-to-let as a way of supplementing their earnings, rather than as their sole income. Of the buy-to-let investors surveyed, only 5% were full-time landlords with five or more properties.

The figures also showed a rise in the number of accidental landlords, backing up Sainsbury’s research, with 16% of those who had become landlords unintentionally saying that they rented out property they’d inherited, while 22% had become landlords due to circumstances such as relocating but deciding to keep their existing home, or being unable to sell a property.

According to Alexandra Morris, managing director of MakeUrMove, the research shows that most landlords are “ordinary people working in normal jobs” rather than wealthy property tycoons.

“[Landlords] work as electricians, taxi drivers, hairdressers or social workers – they are just normal people who want to maintain healthy, stress-free relationships with their tenants.”

She added: “Many of these landlords start on a consent to let mortgages and later become buy-to-let mortgage holders. Having a mortgage on the property means they are forced to pass on the costs to their tenants.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT