Date Published 12 November 2013
Over a quarter of landlords (28%) say they are making a living from letting.
A further 52% are using rental income to supplement their salaries, while seven out of ten landlords (74%) plan to use their rental income to help fund their retirement.
They say rental property will be a lifeline in their financial security in later life, recent research by BDRC Continental has revealed.
Among the main reasons for investing in rental property, landlords highlighted the prospect of supplementing their pension with income from their property portfolio, the chance to make rental income their main source of income in the future, and the opportunity to achieve a better return on property than investing in the stock market.
The survey captured continuing optimism among landlords, with 68% rating the prospects for their own letting business as good or very good, compared with 60% in Q3 last year. It is the highest level since 2007.
The survey also found that while yields were holding steady at around 6%, an increasing proportion of landlords were enthusiastic about the prospects for capital gains.
Critically, landlords highlighted the importance of taking a long-term approach.
Based on an average of 14 years` letting experience, 28% of those surveyed said they were now able to make a living from letting, while 52% said letting supplemented income from their day job.
John Heron, managing director of Paragon Mortgages, said: `This survey provides some useful insight into the long-term horizons and motivation of landlords investing in the PRS.
`Tenant demand for rental property remains strong, and with the mainstay of investment coming from private landlords, it is important for lenders to develop products that can underpin sustainable growth.`