Insurance News Archive
Residential landlords are 'astute and professional'
Property investment is the primary source of income for 28 per cent of landlords, a survey has found.
Paragon Mortgages and the Mortgage Trust, who both specialise in buy-to-let, have released a study of residential landlord behaviour, demographics and motivations.
The report concludes that those investing in rental property are, as expected, financially astute with a professional approach.
For 71 per cent of landlords, property investment is a secondary source of income. They are, however, employed across a wide range of sectors, including public administration, education and health, construction and banking.
A surprising number of residential landlords were found to be self-employed (39.2 per cent).
"Tenant demand, the key driver of the buy-to-let sector, is on the up," said Paragon's director of mortgages John Heron.
"With stable, low interest rates, steadily rising property prices and good rental yields, almost 45 per cent of landlords plan to grow their portfolios over the next year.
"They take a long term view of the market, and almost two thirds of them expect to stay in the market for more than ten years," he commented.
Despite their investment being only a subsidiary income, the average landlord owns 10.6 properties.
12 Jul 2006