UK landlords are continuing to expand their portfolios amidst a thriving property market with 43 per cent owning multiple homes
According to the latest Landlords and Tenants Survey from the Property Academy, almost half of landlords operating in the UK own at least two properties.
The results of the survey revealed that over a quarter of UK landlords own three properties or more while a further nine per cent let out six or more rental properties.
This figure follows the recent Mortgage for Business Property Investor Survey which was carried out in November 2014 and found just 11 per cent of the landlords questioned owned only one property.
These statistics reflect the current strength of the sector, with Romans estate and lettings agent’s Investment Manager Ricky Bhurji commenting that it “highlights the growth of the buy to let market” in particular.
He went on to say that this positive activity in the market could be a result of investors taking advantage of the prospect of strong returns.
“It suggests that many landlords have consciously opted to grow their portfolio and buy more properties because of the strength of this type of investment,” he said.
Twice the benefits
Mr Bhurji explained the appeal of the lettings market, pointing out that it offers amateur landlords two sources of income: monthly rental charges as well as long term capital growth of their property.
As investment in buy to let properties continued to thrive, rental charges across the UK increased by 7.6 per cent in the last three months of 2014 when compared to the same period in 2013.
The latest HomeLet Rental Index suggested that buy to let growth will continue over the course of this year while experts at Romans have also announced predicted price increases of between five and 10 per cent for 2015.
They also anticipate that more people will consider buy to let opportunities with 32 per cent of those questioned in The Landlords and Tenants Survey reporting that they are “highly likely” or “possibly” likely to expand their portfolios over the next year.
This mirrored landlord claims in the Business Property Investor Survey where 55 per cent said they intended to purchase more properties within the next six months (from November 2014).