One in ten of UK adults thinking of Buy to Lets
Income from residential rent has become a popular source for stable income in the UK. More numbers of people in Britain are considering becoming Landlords in 2018 and this reflects the strong position of the UK lettings market, with rent growing consistently in major cities.
Latest research from Sainsbury’s Bank revealed that almost one in ten (9 per cent) of 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 potentially become 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 til such time they have sufficient saving as deposit for their first home. 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, the 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.
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