UK Buy-to-let: An overview for Landlords

UK BUY-TO-LET: AN OVERVIEW FOR LANDLORDS Who is the typical buy-to-let landlord? How many properties do they own? What issues are they facing? These are some of the questions asked by YouGov in a recent survey of UK BTL investors. HOW MANY BTL LANDORDS ARE THERE? 1 IN 5 landlords are buy to let landlords 565,000 There are an estimated BTL landlords in the UK AGE AND EXPERIENCE 53 45 53 The average age The age at which a typical of BTL landlords BTL landlord first became a landlord T'l 45% 55% of BTL landlords are amateurs - of BTL landlords are professionals - they know what to look for when buying properties and arranging they are unsure of what to consider when arranging BTL mortgages and have less BTL experience in general BTL finance WHAT DOES THE TYPICAL BTL PORTFOLIO LOOK LIKE? The average BTL landlord owns... 1.4 HOUSES AND 1.3 FLATS FINANCIAL REASONS FOR BECOMING A BTL LANDLORD Any investment 83% reason Short-term 65% investment Long-term 61% investment .45% Investment is a key motive, yet... of BTL landlords evaluate their investment annually BTL RETURNS: WHAT ARE THEY AND HOW HAVE THEY CHANGED? RENTAL CAPITAL RETURNS GAINS Pre-2002 15% 15%+ ...% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2003-06 7-8% Pre-2002 2003-06 4-6% 4-6% 2007-13 2007-13 0-4% 1-4% BTL LANDLORDS AND THEIR TENANTS b IN TU BTL landlords have arranged new tenancies and renewals Nearly in the last 12 months 29% 21% 18% of BTL landlords have had tenants of BTL landlords have had tenants in rental arrears are not covered with financial for loss of rent or other problems BTL MORTGAGE BORROWING AND INVESTMENT ON THE UP £50 BILLION 34% The amount BTL landlords The proportion of BTL are predicted to have increased their mortgage borrowing by landlords who were landlords before 2007 reporting increased property investment since 2007 between the end of 2007 and the end of 2013 WHAT DOES THE FUTURE HOLD FOR BTL LANDLORDS? 41% 29% of BTL landlords of BTL landlords will carry out renovation/ improvement work on their properties in the coming year say minimising voids is the main priority for the next year 33% 18% of BTL landlords are of BTL landlords say considering or likely to buy a new property finding the finance to buy more properties is a top priority with a BTL mortgage LOOKING TO EXPAND YOUR BUY-TO-LET PORTFOLIO? Contact an ARLA-licensed agent for help and advice visit www.arla.co.uk to find out more. YouGov Source: Buy-to-let: Landlords and Mortgages report by YouGov SixthSense (2013) What the world thinks ARLA http://sixthsense.yougov.com/finance-reports/buy-to- let-landlords-and-mortgages.aspx NewsReAch Association of Residential Letting Agents www.arla.co.uk