14:40 PM, 21st August 2018, About 6 years ago 3
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While the public’s image of a typical landlord might be a money-grabbing property professional, the reality is different. Office admin roles, alongside jobs in IT, teaching and accountancy are the four most common occupations for landlords, according to new research.
Two thirds of landlords have what many would class as ‘normal’ jobs, and rent out property to supplement their main income, the study by online letting agent MakeUrMove has revealed.
A mere 5% of landlords are professionals and own five properties or more, highlighting that very few landlords rake in profits from owning huge property portfolios.
Only 18% of landlords became landlords because they wanted to create a property business. Instead, 16% let a property they inherited, and 22% became landlords through various other accidental and unplanned circumstances, such as splitting with a partner or being unable to sell a house.
With over half of landlords only owning one rented property, the research revealed it is also a misconception that most landlords are wealthy. A majority of landlords questioned in the study by MakeUrMove let property as a subsidiary income to their main occupations, which varied from builders to nurses, to retail managers and postal workers.
One landlord said: “Not all landlords are in it to make masses of profit, some of us rent out our homes – which weren’t bought specifically to rent out – as it is the best option, and we make our tenants feel welcomed and happy in our home.”
Alexandra Morris, managing director of MakeUrMove, said: “These figures shed some light on what British landlords really look like. The reality is that wealthy, multi-property owning landlords are quite rare. Most landlords are ordinary people working in regular jobs who are renting out a property to try and save for their retirement or to supplement their main income.
“With 53% of landlords owning one single property, it’s clear that most landlords are not living off a portfolio of properties. They work as electricians, taxi drivers, hairdressers or social workers – they are just regular people who want to maintain healthy, stress-free relationships with their tenants.
“We’ve found that a good number of landlords fell into renting their property through unforeseen circumstances such as inheriting a property or struggling to sell their own house. Many of these landlords start on a consent to let mortgages and later become buy to let mortgage holders, having a mortgage on the property means they are forced to pass on the costs to their tenants.”
The research also found that 40% of landlords have only been a landlord for 3 years or less, with many admitting they are new to the market and lack understanding of laws and regulations. The new landlords are a symptom of the churn in the sector with many accidental landlords exiting the market after only a small number of tenancies.
Alexandra added: “The private rental sector (PRS) is undergoing significant changes at the moment, with the Government bringing in a tenant fees ban, considering ending no fault evictions and introducing new regulations relating to houses of multiple occupancy, all designed to improve the lives of tenants.
“With so many landlords having come into the role by ‘accident’ and owning only a small number of properties it’s vital that the important work of protecting tenants is balanced with the need to support small landlords who make up the backbone of the PRS.”
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Devon Landlord
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Sign Up9:57 AM, 22nd August 2018, About 6 years ago
For many years Landlord Associations have tried to help new and embattled landlords make some profit from the precarious business of being 'A Landlord'. Currently the future looks like being stacked against the landlord with new regulations not helping to make their lives easier. Landlords need to be protected against bad tenants and if things keep moving in a downward spiral a huge number will exit from the business and I do mean business Mr Chancellor!
Being a landlord is not a fun occupation for many of us; it is hard work, frustrating at time and even heartbreaking when we see the nice home we have provided destroyed by mindless and selfish fools who like rotten apples give tenants a bad name. There are bad landlords and there are some very bad landlords but most are trying hard to do a good job. We need help to get rid of terrible tenants and get on with the job of being good home providers. So, return the tax relief on mortgages system back to where it was and make fast track ejection of bad tenants much easier or, before too long there will be a shrunken PRS and Local Authorities will be in an even worse situation meeting their housing responsibilities than they are currently.
If you take away the money in tax that most landlords would use to improve their properties we will end up in the same position we were in before the War with no chance to increase rents and no money to make necessary improvements. We all see that as the ultimate way ahead if we do not speak out now and do something about it. So join an Association to help get your voice heard and benefit from the support you can get through its membership..
Devon Landlord.
Fen Jen
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Sign Up10:28 AM, 22nd August 2018, About 6 years ago
The government does not care about us. It does not want individual private landlords. It wants large corporate companies and housing associations provi
ding accommodation in the prs. It is not interested. It is convinced we all provide rubbish housing, evade tax and charge too much rent. They are totally unconcerned about bad tenants trashing property and costing the landlords a fortune to put it right again. Both parties are unbelievably shortsighted. I could understand it if they had a dearth of council property to provide homes for these people. It seems they do not care how many people are on the street. The will not reverse the section 24 it makes them too much money with the tax grab.
The only answer is to get out now while you still have some equity and before there are even more regulations to comply with. Good luck .
Rod
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Sign Up12:31 PM, 22nd August 2018, About 6 years ago
I can't deny that when I lived in a bedsit years ago I too thought LLs were very rich scoundrels but there are two sides to every story, now I know better! I feel the government has off loaded many social tenants on to the PRS as as they're now free from their own headaches and can bring in nice big fat juicy fines! I'm not against the government but there are limits! If they push LLs, out what then?