Research suggests that the number of first time landlords as well as those turning to renting out their property has increased this year.
While 2008 saw the lowest level of demand for buy-to-let mortgages since then there has been significant increases, as homeowners look to maximise the demand for homes and tenants are priced out of the mortgage market.
Although professional landlords remain the ‘backbone’ of the market, the number of private landlords who are new and typically rent out 1 to 5 properties has increased to a high level.
The rise could also be attributed in part to the fragile state of the employment market. As people struggle to find full time work they are entering the property market as way to supplement income as well as satisfy the demands of a hungry private rental market.
Professional landlords are more constrained in terms of flexible equity, therefore this has also produced a gap which ‘accidental landlords’ are finding they can fill.
Is this a good thing for the industry? How do you think it will affect the reputation, services provided and profit of professional landlords?
