More Brits considering becoming landlords in 2018
Income from residential rent has become a popular source for stable income in the UK. More number of people in Britain are considering becoming landlords in 2018 owing to several reasons. This reflects the strong fundamentals of the UK lettings market with rent growing consistently in major cities.
A latest research from Sainsbury’s Bank Mortgages revealed that almost one in 10 (9 per cent) UK adults showed an interest in taking out a Buy to Let (BTL) mortgage in 2018. This meant that across the UK, approximately 4.8 million people could become potential landlords in 2018, further expanding the pool of rental properties.
With affordability becoming an issue for many home-buyers, most of them prefer rental homes till such time they have sufficient saving as deposit for their first homes. In the process, the rental market is expanding and registering a stable growth year-on-year. The London residential rental market in particular is growing at a healthy rate of 4 per cent and above month-on-month attracting more BTL investors.
In addition to an attractive rental income, many other factors are prompting people to become landlords in the UK. Apparently, a change in income, current housing and receiving inheritance are the main drivers for this trend.
Of those taking out or considering a BTL mortgage, over a third (35 per cent) said a change in income had inspired them to do so, while 3 in 10 (29 per cent) remain encouraged by the current opportunities to enter the BTL market. A quarter (25 per cent) were considering a BTL mortgage after receiving inheritance and many may have found themselves “accidental landlords.”
It was also interesting to note that majority of the potential landlords opted for a house for their BTL mortgage. Over half (51 per cent) of them considered buying a house while 46 per cent considered purchasing new builds prior to this year. Another 46 per cent have also considered purchasing a flat, with 44 per cent having considered buying new build flats. New build homes and flats are among the popular rental properties in the UK.
The lettings market in the UK, especially London, was buoyant in 2018. The residential market is poised for growth with better rental yields predicted.
Strawberry Star Group has several BTL properties in London where rental growth is stable with competitive rental returns and potential capital gains. If you are interested in buying a BTL property or flat in London, connect with our estate agents by calling our office.
Source: Sainsbury’s Bank
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