SimplyBusiness.co.uk report on the Changing Face of Britain’s Landlords as Young Entrepreneurs enter the Market
Analysis from SimplyBusiness.co.uk has indicated a significant change in both the age and gender of private landlords in the UK. The traditional face of the archetypal British landlord is changing according to the study which shows there is a new, younger breed of landlord entering the private rental market; which would indicate that when it comes to property, many still think that there’s money to be made.
Comparative data of landlord insurance policies sold by SimplyBusiness.co.uk in 2006 (versus 2010) shows a marked increase in landlords aged 18-34.
Likewise the gender gap is beginning to close as 39% of landlords insured via SimplyBusiness.co.uk are female, versus 36% in 2006.
Interestingly, when comparing the types of property being insured, there hasn’t been a statistically significant change since 2006 with terraced housing still accounting for the largest proportion of private rented accommodation.
Julian Watson, landlord insurance product manager for SimplyBusiness.co.uk says:
“There is a great opportunity within the rental market at the moment, as the ongoing financial instability sees first time buyers struggling to get a foot on the property ladder and remaining in rental properties for much longer than planned. However, landlords also need to be aware of the impending housing benefit cuts which may present a challenge, as well as an opportunity to the savvy property investor.”
For those who are thinking about becoming private landlords, SimplyBusiness.co.uk would recommend thinking about the following:
1. Budget - Establish your budget beforehand. Make sure the figures stack up and that you can make money out of renting out your chosen property. Don’t forget that you’ll need to consider not only the costs for the purchase of the property but also for those you’ll be facing annually; and those maintenance costs which may occur every two to three years.
2. Save - Save for a ‘rainy day’; you might need to fund the mortgage payments yourself if your property is unoccupied; or pay for maintenance, redecoration etc.
3. Regulation - Do your research on the challenges that future regulation may bring to you as a landlord.
4. Finance - Choose the right mortgage. It’s still going to have to be paid whether you’ve got a tenant in the property or not.
5. Tenants – Decide what sort of tenants you are looking to attract, and make sure your property works for them. Additionally, make sure you select your tenants carefully, and seek references
All data is sourced from the 19,851 Landlord Insurance policies sold by SimplyBusiness in 2010; versus the 6,234 policies sold by Simply Business in 2006.
For further information relating to this report, please contact:
Hannah Smith, Distilled
firstname.lastname@example.org or call 020 7183 0767