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Housing Survey Reveals Confidence Of 'joe Public' Landlords

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Housing survey reveals confidence of 'Joe Public' landlords

Housing survey reveals confidence of 'Joe Public' landlords

Publisher: Ryan Davies

Published: 15/06/2007 - 09:52:40 AM

Buy-to-let landlords are more Joe Public than Duke of Westminster, according to the largest ever survey of UK landlords since the inception of the buy-to-let market. The current most popular spot to buy…the sunny South Coast city of Brighton.

The survey of nearly 5,000 landlords by Bradford & Bingley, the UK’s leading buy-to-let lender, revealed that those most likely to invest in the buy-to-let market in 2007 are everyday people who are looking for capital growth and a means to supplement their pension pots. The majority successfully hold down a day job in addition to maintaining their rental properties. Only 10% of buy-to-let investors are self-employed as a full-time professional landlord.

Contrary to the misconception that landlords are in it for a quick buck, most are investing for the long-term, with half of all respondents confirming that they have been investing in property for over five years, to date. Only 7% have been investing for under a year.

Given their long-term view, recent interest rate rises have failed to diminish landlords’ confidence in the market, with a greater number of respondents planning to increase or maintain their property portfolio (88%)** than at the same time last year (86%).

There was also increased landlord confidence in regard to rent levels, with 96% of landlords expecting rent levels across their portfolios to either increase or stay the same over the next six months. This was an increase of 7% on the same time last year.

The profile of the typical buy-to-let investor is:

Male (64%) and between 36 and 45 years of age (33%).

63% have between one and five buy-to-let properties

Half of landlords (50%) have been investing in property for over five years

71% are either full-time employed or self-employed in addition to renting out properties

The most popular investment property is still the terraced house, with 58% of landlords having at least one terraced house in their property portfolio, up from 52% last year

The South East is the most popular area for buy-to-let investment, with 29% of landlords owning an investment property in the region. Brighton is the jewel in the South East’s crown, enjoying the fastest rate of growth at present. Its popularity among buy-to-let investors is largely driven by its vibrancy, large student population and proximity to London.

Over a fifth of landlords (23%) own buy-to-let properties in London, making it the second most popular part of the UK in which to invest.

Across the UK, landlords reported a healthy mix of social groups amongst their tenants, with couples accounting for 45% of tenants, single people for 36% and students 12%.

Andy Wiggans, director of mortgages at Bradford & Bingley, said: “Despite recent reports of a slowdown in the buy-to-let sector, our biggest ever survey of those at the heart of the market shows it remains strong. Higher interest rates may have an effect on cash flow but they have no impact on long-term capital returns. Buy-to-let remains a popular market that attracts a wide spectrum of people from all walks of life looking for long-term capital growth or a means of supplementing their pension."

Edited by studdymx

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Housing survey reveals confidence of 'Joe Public' landlords

Housing survey reveals confidence of 'Joe Public' landlords

Publisher: Ryan Davies

Published: 15/06/2007 - 09:52:40 AM

Buy-to-let landlords are more Joe Public than Duke of Westminster, according to the largest ever survey of UK landlords since the inception of the buy-to-let market. The current most popular spot to buy…the sunny South Coast city of Brighton.

The survey of nearly 5,000 landlords by Bradford & Bingley, the UK’s leading buy-to-let lender, revealed that those most likely to invest in the buy-to-let market in 2007 are everyday people who are looking for capital growth and a means to supplement their pension pots. The majority successfully hold down a day job in addition to maintaining their rental properties. Only 10% of buy-to-let investors are self-employed as a full-time professional landlord.

Contrary to the misconception that landlords are in it for a quick buck, most are investing for the long-term, with half of all respondents confirming that they have been investing in property for over five years, to date. Only 7% have been investing for under a year.

Given their long-term view, recent interest rate rises have failed to diminish landlords’ confidence in the market, with a greater number of respondents planning to increase or maintain their property portfolio (88%)** than at the same time last year (86%).

There was also increased landlord confidence in regard to rent levels, with 96% of landlords expecting rent levels across their portfolios to either increase or stay the same over the next six months. This was an increase of 7% on the same time last year.

The profile of the typical buy-to-let investor is:

Male (64%) and between 36 and 45 years of age (33%).

63% have between one and five buy-to-let properties

Half of landlords (50%) have been investing in property for over five years

71% are either full-time employed or self-employed in addition to renting out properties

The most popular investment property is still the terraced house, with 58% of landlords having at least one terraced house in their property portfolio, up from 52% last year

The South East is the most popular area for buy-to-let investment, with 29% of landlords owning an investment property in the region. Brighton is the jewel in the South East’s crown, enjoying the fastest rate of growth at present. Its popularity among buy-to-let investors is largely driven by its vibrancy, large student population and proximity to London.

Over a fifth of landlords (23%) own buy-to-let properties in London, making it the second most popular part of the UK in which to invest.

Across the UK, landlords reported a healthy mix of social groups amongst their tenants, with couples accounting for 45% of tenants, single people for 36% and students 12%.

Andy Wiggans, director of mortgages at Bradford & Bingley, said: “Despite recent reports of a slowdown in the buy-to-let sector, our biggest ever survey of those at the heart of the market shows it remains strong. Higher interest rates may have an effect on cash flow but they have no impact on long-term capital returns. Buy-to-let remains a popular market that attracts a wide spectrum of people from all walks of life looking for long-term capital growth or a means of supplementing their pension."

I can barely be bothered to respond to this again but - the report comes from Bradford and Bingley who sell BTL mortgages - their profits and market share have been sliding - so they make up a survey and report and release it to the media as a Press Release - media publish it verbatim because they are lazy. Its boll*x - see the other thread.

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Well it is only fair to consider any bullish news that arises, even if one might consider it biased. After all, any bearish news maybe considered biased by some.

'news' gives it an air of authenticity that it does not warrant. This is an advertorial.

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I can barely be bothered to respond to this again but - the report comes from Bradford and Bingley who sell BTL mortgages - their profits and market share have been sliding - so they make up a survey and report and release it to the media as a Press Release - media publish it verbatim because they are lazy. Its boll*x - see the other thread.

hehe I love the way on HPC any possible bullish new is made up and any bearish news is spot on accurate. I agree that its important to evaluate sources, but lets be honest, it wouldnt matter who published this - no one hear would ever accept the findings. As much as we cant prove it is true, we cant prove that it isnt.

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Guest casaloco

The reason for the attitude is that bearish news comes from good, independant sources or sources that really wouldn't want to be making bearish announcments unless they really had to.

On the other hand, all the bullish news comes STRAIGHT from the VIs, such as Estate Agents and building societies.

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Will be interesting to see how many stay the full term when they see the prices of their assets starting to plummet and they lose their job? I hope the same survey is commissioned in 3 years time.

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Guest Yeahbutnocrash

Yes this was already posted under the thread: 'Buy-to-let survey defies the slowdown'

You'd expect the B&B would want to present the btl market as being solid and their customers to see it presented as such

Also the less successful btlers may have been less likely to responded to the survey so it may be that the respondents consist of a higher proportion of btlers who are doing ok compared to the entire btl market

Also I would not be surprised if the amount of new lending is declining so I would guess btl is not exactly defying the slowdown, but I expect it's not holding up badly either

However this survey should not be dismissed out of hand as it contains the views of actual btlers in the current market and the results should help those lacking experience of btl to understand it's real state

If the housing market was in the midst of a crash then you could expect more pessimistic responses from the btlers but that is not the case right now. So after all the HPI (including from the start of 2005 for recent new btlers) it's not surprising that on the whole btl is very solid

But I agree that starting out in btl right now and attempting to use masses of leverage could be dodgy

Edited by Yeahbutnocrash

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Well it is only fair to consider any bullish news that arises, even if one might consider it biased. After all, any bearish news maybe considered biased by some.

Confucius he say: Bear in china shop would make just as much mess.

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In society as a whole, certain assumptions can be made that are almost always true. Even the governments own departments use such assumptions;

for example

People who live on council estates whom are unemployed are likely to be driving a vehicle with expired road tax and no MOT.

That is not to say that all unemployed people on council estates are guilty of this, just that in practice there is a high probability of this.

On the same basis;

Non-professional landlords who got in far too late to make any money and are struggling with their payments are almost certainly not on a real BTL mortgage and are not paying tax on their BTL income. Thy are therefore unlikely to either respond to a survey about BTL in case they are grassed up to the tax man, or be questioned by their mortgage company about BTL since they have a standard owner-occupier mortgage.

Not nessesarily true. But with the odds, probably worth a bet.

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In society as a whole, certain assumptions can be made that are almost always true. Even the governments own departments use such assumptions;

On the same basis;

Non-professional landlords who got in far too late to make any money and are struggling with their payments are almost certainly not on a real BTL mortgage and are not paying tax on their BTL income. Thy are therefore unlikely to either respond to a survey about BTL in case they are grassed up to the tax man, or be questioned by their mortgage company about BTL since they have a standard owner-occupier mortgage.

Not nessesarily true. But with the odds, probably worth a bet.

Correct. My previous landlord in London has 2 properties rented out while they "took a year out" abroad. They never went back but continued to rent them out. The mortgage was an OO mortgage. I know this for fact because the lender phoned me on more than one occasion thinking I was the owner.

There are plenty of them out there. Just check any small ads on a newsagents door or Gumtree.com

All evade tax.

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