One in five UK landlords have entered the often-complex world of buy to let without even planning to, finding themselves with a property ‘accidentally’ or through inheritance, according to research from Foundation Home Loans.
According to this survey, 14% of the interviewees stated this was through marriage, relocation or another unexpected circumstance, and almost one in ten landlords inherited their properties, something that comes with its own complex tax challenges to navigate.
Almost a quarter of all landlords questioned became a landlord purely for financial reasons with 21% planning to use earned rental income to fund their retirement plans.
A fifth said they are full time and do not have another job, with the greatest proportion doing so in London as landlords recognise the ongoing demand for rental properties in the capital,as young professionals look for places close to work.
Most landlords, almost 60%, have a full-time job and are investors in their spare time, whilst a fifth, almost 19%, have a part-time job but spread their time among their various landlord duties.
“With so much regulation introduced into the buy-to-let market in the last few years, it could be easy for those who are unplanned landlords to make a swift exit rather than stay and navigate the red tape. That said, no matter how they found themselves owning rental property, it’s clear landlords are interested by the buy-to-let market for a variety of reasons and objectives, financial or otherwise,” Jeff Knight, marketing director at Foundation Home Loans, said.
“Considering the rental sector forms an increasingly important part of the housing mix, landlords need to be armed with the right advice. Our findings indicate plenty of the ‘accidental landlords’ are looking to expand their portfolios and remain invested in the market, which will ultimately have a positive impact on quality and choice for renters,” he added.