Inner London and the seaside resort of Bournemouth are Britain’s buy to let hot spots, according to a new survey.
In both places, buy to let landlords own 30% of the housing stock, says a report from landlord insurer Direct Line for Business.
Behind the leaders come The Isles of Scilly (29%), where the Duchy of Cornwall, run by Prince Charles, owns many of the homes. Next is Brighton, West Sussex, also with 29% of private homes run as buy to lets and Hastings, with 28% of homes privately rented.
The study also reveals that buy to let landlords are raking in rents of around £2.7 billion a month – with £1.16 billion going to the capital.
In fact, London landlords earn more in a year than those in the North East, East Midlands, West Midlands, Yorkshire and East Anglia combined.
Around 44% of all private rents are paid to buy to let landlords in the capital.
Next come buy to let landlords in Leeds (£565 million); Birmingham (£521 million) and Manchester (£401 million).
Highest average rents are in
- Central London (£1,633 a month)
- Elmbridge, Surrey (£1,579 a month)
- South Buckinghamshire (£1,530 a month)
- Three Rivers, Hertfordshire (£1,372 a month)
- Sevenoaks, Kent – (£1,345 a month)
Outside the major cities, landlords in Bath and the Cotswolds both command annual rental incomes of more than £11,000 per year.
Jazz Gakhal head of Direct Line for Business said: “Buy to let is becoming an increasingly attractive option for people as property prices continue to soar.
“Landlords and potential landlords looking to take advantage of this should also appreciate the risks involved. Bad payers and potential damage to property are but just a few of the costs that can lead to landlords paying out 25% of the revenues they receive in rental payments annually.
“Taking the necessary precautions such as letting through an agency and taking out landlord insurance can help to alleviate concerns and ease the rental process.”