Probably not is the answer!
Research has been carried out for the trade body for buy to let lenders, the Council of Mortgage Lenders (CML), to provide detailed analysis of private landlords and their property businesses.
Here are the main takeaways:
Buy to let mortgages
Just under half of landlords own letting property outright (49%)
Equity was equally split as well, with half below 60% of the property value, with the rest sitting between 60% and 90% of the value – and just 1% over the 90% mark
Most landlords only own a single rental home (62%) and the average portfolio is 2.7 homes
A telling factor of an aging dynasty – 61% of today’s landlords are aged over 55, compared to 24% in 2004. Not only are landlords older, but the number of new landlords is falling. In 2004, 18% had bought a buy to let home in the previous two years, but that has dropped to 7% this year.
It’s not all about the money
Median annual gross rents are £7,500 a year or £625 a month reflecting the number of landlords with a single letting property, but mean gross rents are £17,300.
Two-thirds of landlords earn less than 25% of their annual household income from buy to let rentals, while just 5% revealed they made a living as a full-time landlord.
A quarter of buy to let homes are rented out by ‘accidental landlords’ and 14% started letting property to help a friend or relative.
Paul Smee, CML director general, said:
“While the overall findings are encouraging and offer a reassuring picture of relative stability, there is a certain irony in the researchers’ conclusions that the landlords who will be most affected by the government’s tax changes are those at the most professional end of the sector with large, leveraged portfolios.”