Figures released in July 2014 suggest that the percentage of ‘amateur landlords’ within the property sector are at an all-time high. According to the National Landlords Association, these types of landlord, who work part-time to support their day-job, account for over 70%[1] of the industry.
Signs of recovery
A rise in the current rental market, coupled with the upturn in economic recovery, is attracting more amateur landlords into the market. The NLA findings also suggest that around 20% of part-time landlords will look to expand their ownership of properties in the coming year.
Future planning
Chairman of the NLA, Carolyn Uphill, was not surprised by the findings. Uphill said that a growing number of people are choosing to, ‘buy to let as an alternative means of saving for the future.’
These comments can be backed up by the statistics, which suggest that the average amateur landlord has four rental properties, generating gross income of around £31, 000. The NLA report indicates around a quarter of this gross income is used for maintenance costs.
A need for caution
The figures suggest that around 40% of amateur landlords have utilized buy-to-let finance schemes to assist them with their purchases in the rental market. Buy-to-let lenders soared during the last-year, up by 32% on the last recording period.
Prospective part-time landlords however should not expect to sign up and simply watch the money roll in. Despite the obvious potential rewards, Uphill errs potential landlords to the side of caution. ‘Anyone considering a move in to buy-to-let,’ she said, must be, ‘thoroughly researched and aware of what it involves.’
Uphill also noted that with already having a regular job, becoming an amateur landlord can be, ‘very challenging,’ when trying to perfect, ‘juggling the demands of daily life.’
Support
It is vitally important that all prospective landlords are confident, educated and aware of what going in to the buy-to let market involves. Initial guidance is important for all amateur landlords.
[1] http://www.landlords.org.uk/news-campaigns/news/amateur-landlords-reach-highest-ever-level