Landlords do not have to earn a fortune to feel wealthy, according to the bank behind Britain’s biggest buy to let lender.
Most people that feel rich have at least one buy to let home, says the survey by Lloyds Bank, which owns the Birmingham Midshires landlord lending brand.
The bank also suggests that many wealthy people underestimate how much they earn compared to others.
Researchers found those that feel wealthy earn £65,000 or more a year and have an average household income of at least £86,000 a year.
This compares to an average income of £34,576 in July 2015.
The wealthy are also more than four times as likely to own investment property – 43% compared to a national average of 11%.
Sarah Deaves, Private Banking Director at Lloyds Bank, said:
“Feeling wealthy is about more than just the amount of pounds people have in their pocket to spend. We know that homes, but also cars, investments and lifestyle also play a part.
“Those that feel wealthy today tend to be middle aged. They have perhaps benefited from better pensions, large house price inflation, no university fees and have lived through several years of a low inflation, low interest rate environment.”
Besides earning more than average and owning investment property, those that feel wealthy are aged between 44 and 54 years old, married, have property without mortgage worth £738,000 and other assets, such as shares and bonds, valued at £688,000.
Those matching the profile more likely live in London (18%), the South West (12%), the North West, Yorkshire & Humberside or Scotland (10% each).
Most also shun professional financial advice – with one in four never consulting an IFA.
“Given the wide range of uncertainties faced today with, amongst other things, stretching affordability for housing, education and care in later life, taking financial advice can help people feel more in control of their options,” said Deaves.
