Third of landlords plan to grow property empire
The lender’s survey, completed in conjunction with BDRC Continental, found that landlords were planning to expand despite a fall in tenant demand in recent times.
At the end of 2013 just over a third of landlords (35%) said they were witnessing a rise in tenant demand compared to 52% at the end of 2011. Many landlords reported a levelling off in demand during this period as the market reaches saturation point.
As many as 80% of landlords currently make profitable full time living from their portfolio while 76% of amateur landlords either made a profit or broke even on their properties.
A third of landlords (34%) reported a void period in their properties in the last three months although the typical void period fell by 5 days to reach 59 days in total. Landlords with bigger portfolios were able to cover this loss using profits from other properties, the lender said.
Phil Rickards, head of BM Solutions, said: “While there will always be elements of the rental market that fluctuate, overall stability will continue to ensure that lettings attract both professional and amateur landlords.
“By increasing portfolios landlords are also able to further spread the risk of void periods and tenants in arrears, which is important when considering the long-term investment rather than focusing on the short-term gains.”