Home Owners Become Landlords
Recent research by Rightmove would suggest that UK average yields on rental properties are 5.73% – far higher than most investors can expect from a deposit account. Furthermore the proportion of landlords looking to invest for the first time is at its highest level for more than a year at 44%.
This seems to be fuelled by many accidental landlords – owner-occupiers who only move into renting due to a poor sales market or other circumstance – keen to abandon their ‘amateur’ status and invest further. One in eight accidental landlords have decided that they now want to build a portfolio by buying more property to let.
Accidental landlords make up around 30% of all private landlords. Separate research by Rightmove shows that 74% of professional landlords also aim to increase their rental portfolio in the next year. Around 88% of landlords surveyed report that they are looking for 5 per cent as the minimum average return on their rental investment.
“This is clearly a good return on investment” says GFWLetting Fran Mulhall, “For many prospective landlords their concern is the unknown.”
If you would like to talk to Fran regarding a potential investment or to discuss your existing portfolio please call 0191 605 3150 or click here to send an email.
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