There’s been plenty of conflicting news around over the summer suggesting that there’s going to be an landlord exodus, or that landlords are planning to never leave the market… it’s difficult to know what to believe of this topsy-turvy marketplace. .
New research from Sainsbury’s Bank has thrown another curveball in, suggesting that 9% of UK adults - a whopping 4.8 million people - could become landlords in 2018…
The research, based on the banks mortgage applications, suggests that 29% of people who had actually got so far as to take out a BTL mortgage were encouraged to do so by the current opportunities in the market. A quarter (25%) stated that they were investing in property following the receipt of an inheritance, and many in this sector found themselves in the accidental landlord bracket.
A hefty 35% of people admitted to be taking the plunge due to a change in income, however the research didn’t detail whether this was an increase or decrease in income…
It suggests that whatever the circumstances, we are still no closer to deciding on a perfect type of property to invest in. Just over half (51%) of potential landlords say they would prefer to invest in a house, whereas 46% thought a flat would be a better option. New builds remain popular, with 46% thinking they are the way forwards, whilst 44% specified the benefits of a new build flat.
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.David Buxton, head of banking at Sainsbury’s Bank
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