One third of landlords plan to grow property empire.By Mark Long
A third of landlords are planning to take on additional rental properties and increase the size of their portfolio in the next year.
BVA BDRC’s lender's survey found that landlords were planning this expansion despite a general drop in tenant demand. At the end of 2013 just over a third of landlords said they were witnessing a rise in tenant demand, a fall of nearly 20% since the end of 2011. Many reported a levelling off in demand during this period as the market reaches saturation point.
The study also found that as many as 80% of landlords made a profitable full time living from their portfolio. Three-quarters of amateur landlords either made a profit or broke even on their properties.
A third of landlords reported a void period in their properties in the last three months although the typical void period fell by 5 days to reach an average 59 days in total. Landlords with bigger portfolios were able to cover this loss using profits from other properties.
Despite these fluctuations in certain elements of the rental market, overall stability continues to ensure that lettings attract both professional and amateur landlords.
Focusing on long-term investment rather than short-term gains means landlords must spread the risk of void periods and tenants in arrears, which many are achieving by expanding their portfolios.