5th
Sep 2024
A new survey findings shows why landlords are staying put in the private rental sector in spite of ever increasing regulations and tax difficulties.
The lender’s survey polled 500 landlords who owned three properties and have stated they were intending to purchase more properties.
The key reasons for the positivity includes
- 60% stated the ever increasing demand for rental homes is one of the major reasons to carry on with adding to their portfolio;
- 54% of landlords will be purchasing more properties to increase their retirement income;
- Virtually half – 47% – of respondents said it was for the long term investment in house price growth;
- 34% opted for property investment rather than other options.
A spokesperson for the lender, says: “The rental market is set for continued growth, driven by projected population increases of around 10% over the next decade. This favourable market outlook is underpinning the investment decisions of aspiring landlords.
“The research also demonstrates a clear focus on long-term planning, with over half of landlords building portfolios to support their retirement. This indicates a strong commitment to the rental sector and is essential for the overall health of the private rented market.”
The lender’s study also found what swayed them to become landlords.
Family and friends played a very important role for many landlords with 43% stating they were the major motivation to take the jump, whilst 39% of landlords said they began renting out their first property by accident from either by inheriting a property or buying a second home.
They also gave reasons why they decided upon property investment rather than other options with 67% stating its hands on nature, 54% said the wealth accruement potential and 53% to pass onto their children.
The spokesperson concludes: “The rental market is attracting a growing number of landlords who are inspired by their friends and family or who have discovered the benefits of property ownership through other circumstances. These aspiring landlords are committed to providing rental homes for the future and require a supportive regulatory and fiscal environment to continue their investment activities.”
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