People are increasingly turning to becoming landlords as a way of investing their cash, according to research from Birmingham Midshires
The survey, of Birmingham Midshires (BM) buy to let customers, looked at how long landlords had been in the market and why they decided to become involved in the first place.
The results showed that 46% had been landlords for between one and five years, and of these, 36% said they had become involved because of the additional income that rent could provide for the future and retirement.
21% said the main reason for buying an additional property was for long term investment and the potential capital growth on the property’s value, again, for retirement.
Much less – just 4% - said they had bought a buy to let property for the benefits of additional income now.
7% were letting a property because it was previously their own home.
The survey also looked at the age of landlords, 32% were aged between 55 and 64, and said that their imminent retirement was the main reason for their investment. The survey also suggests that younger people are using buy to let as a long term investment, as 15% of the landlords surveyed were under the age of 34.
"The buy to let sector has fast become a solid and established market in recent years, and these figures show that people investing are taking a long term approach,” said Iain Williamson, head of key accounts at BM.
"This is great news for brokers. Given the confidence that landlords have in the future market, there's a really good opportunity to apply their expert market knowledge to the decisions of these savvy investors".
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