Almost half of landlords rely on their buy-to-let portfolio as their main source of income according to a recent study.
Buy-to-let remains highly attractive to investors, compared to low savings rates and stock market volatility and new research shows that buy-to-let offers them the opportunity to be supplement their income and become less reliant on paid employment.
The research reveals that 40% of landlords gain an income from their buy-to-let properties and for nearly half of landlords, it is their main source of income.
The study*, conducted by PropertyLetByUs.com – a leading online letting agent, reveal that just over a third of landlords have a full time jobs and while 5% work part time. Of those working, one in six landlords would like to give up their jobs and become full time landlords.
(* Source: PropertyLetByUs research amongst 500 landlords, April 2015).
The research also reveals that half of landlords have loan to value of 20%, while 36% of landlords have a loan to value of 40%. One in five landlords is enjoying annual yields of between 15% and 30%, while a quarter of landlords have yields between 5-10% and one in six have yields of up to 15%.
Jane Morris, Managing Director of Property Let By Us comments: “Buy-to-let continues to provide an excellent return on investment, with many landlords able to take an income, as well as enjoy the capital growth of the property. Landlords are enjoying healthy yields as rents in many parts of the UK rising.
“Recent research from the HomeLet Rental Index show that rents across the UK are 10.2% higher than a year ago. The average rent on a tenancy signed in the UK during the first quarter of 2015 was £902, compared to £819 for tenancies signed during the first quarter of 2014. Rents are higher in every region of the UK except Wales compared to a year ago.
“Mortgage rates remain at record lows which is helping buy-to-let landlords achieve higher yields. So for potential investors with enough money to raise a big deposit, buy-to-let is highly attractive, compared to the low savings rates and stock market volatility.”
For more information, please visit www.propertyletbyus.com