Students and singles are traditional fodder for the UKs rental market, however the soaring prices of the average first-time buyer property mean that it has become far more socially acceptable for the younger generations to keep their feet off the property ladder for a good while longer.
For some, renting may feel like pouring money down the drain with nothing to show for it, but actually the desirability of rental property is seeing a resurgence as interest rates push mortgage repayments up and disposable income down something which property investors are cashing in on by keeping their tenants on stable rates to nurture the financial attraction.
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Professional landlords those who boast either 6-20 properties in their portfolio, or own property to the tune of £1 million experience rental income at an equivalent to the national average wage and now account for a fifth of all landlords. Interestingly, they are also younger than non-professional landlords who have perhaps moved out of their family home and in with their children, but have chosen to rent the house out rather than sell up.
Alliance & Leicesters director of mortgages, Stephen Leonard, comments: The prediction of further rate rises this year has fuelled debate on a cooling in the buy-to-let market with rental yields decreasing. However with increasing numbers of professional landlords, and the majority expecting toe stay in the market for more than ten years, buy-to-let is likely to remain an important part of the overall housing market.
More than one in ten landlords now say that property is both their main job and source of income, with a further 20 per cent supplementing their income with the substantial gains they make from investing in property part-time.
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