37% of private landlords make their living from letting
London: 23rd May 2012: The latest research from BDRC Continental’s independent Landlords Panel survey reveals that more than one in four private landlords don't owe anything on their rental properties. The quarterly Landlords Panel reveals that 28% of landlords own their letting portfolio outright, while 33% have a mixed portfolio, and 39% own their portfolio on one or more buy to let (BTL) mortgages. The average number of BTL loans held is 7.7.
It seems that in the current economic climate property is seen as a more profitable vehicle for savings than traditional investments. Of the 28% who own their portfolio outright 41%said they purchased their properties outright using previously invested funds, a further 23% purchased their properties outright using non-invested funds, while 29% have fully paid off past BTL borrowings.
This trend may explain why 37% of landlords say that they make a profitable full-time living from letting - although the proportions increase with the number of properties held. One in ten (11%) landlords with one property are able to make a profitable living from letting, compared to 38% of those with 5-10 properties, and 72% of those with 20+ properties. However, for those who rely on BTL mortgages for some or all their portfolio, the story isn't all a bed of roses. 39% agree that they see no real difference in the BTL products currently available, and 60% say that BTL lenders do not consider their individual circumstances as a landlord. It's not surprising then that 74% agree that the BTL market needs greater innovation, and 89% agree that the BTL market would benefit from greater competition.
Commenting on the latest Landlords Panel findings Mark Long, Director for BDRC Continental, says: “According to our research it is clearly possible to make a full time, profitable living from private letting, and certainly those with larger property portfolios are more likely to be able to do so. BTL mortgage borrowing remains important for the majority of private landlords and our research suggests that there is still room in the market for providers to listen to their customers and provide a product suite better suited to their needs.”
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Note to editors
This release contains a selection of findings from the Q1 2012 BDRC Continental/NLA Landlords Panel study. Fieldwork took place 9th – 26th March 2012 and incorporated 543 online interviews with National Landlords Association members.
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Lynda Hardy Maskell, Greenfields Communications lynda@greenfieldscommunications.com
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About the BDRC Group
The BDRC Group comprises leading specialist market research agency BDRC Continental, operations group Perspective Research Services and, most recently, BDRC Asia in Singapore and BDRC Jones Donald in Sydney.
The Group ethos is that each company be staffed by highly experienced researchers with great reputations in their individual fields as well as in the market research industry. Clients of the BDRC Group value the consultative approach and ability to understand and add value to clients’ businesses – what we call ‘providing intelligence’. BDRC Continental has developed proprietary techniques including Tracktion, Grapevine, Service Intensity, the Business Opinion Omnibus, SME Finance Monitor, and ZMET Visionary Thinking. Perspective Research Services brings expertise in all aspects of data collection across the globe - business and consumer; qualitative and quantitative; telephone, face-to-face and online – and offers a range of tools for data handling, analysis and reporting. BDRC Asia, Singapore’s newest full service agency specializing in B2B, financial, and travel and tourism research and business consulting opened in October 2011. BDRC Asia offers both a CATI facility and a viewing studio housed in its offices. In November 2011, BDRC Group added Australia to its offering. Based in Sydney, BDRC Jones Donald has an enviable reputation in financial, retail and telecoms research and consulting.
