Most landlords 'live close to rental properties'

by Sarah Ashcroft

The majority of landlords in the UK choose to buy rental properties that are just a short distance from where they already live.

New research by Countrywide shows that 56 per cent of those renting out a home live within ten miles of it. What's more, property portfolios are typically small, with only six per cent of landlords owning more than one abode.

Monthly rental values in the UK are generally on the rise, with the average amount said to have gone up by 3.1 per cent in the last year.

The increase was at its greatest in Scotland, where rents rose by 9.6 per cent to £626 per month, while in central London they were up 8.5 per cent to £2,630.

However, there were falls in the West Midlands and Yorkshire and Humberside, proving that it's not necessarily easy to increase earnings year on year in every part of the country.

In many cases, it may be that landlords choose to buy a rental property based on its location rather than the return they are likely to make or the latest figures relating to its income.

Nick Dunning, group commercial director at Countrywide, said: "Location is key to buy-to-let investment and as the findings show, landlords tend to purchase in areas they are knowledgeable of in terms of property prices, monthly rents and the local amenities that attract tenants to an area."

Only in rural areas such as Wales and the east of England do fewer landlords live within ten miles of their rental property, and this is explained by the sparse population. Even in these cases, landlords tend to be close enough to keep an eye on their homes.

Many landlords could be interested in increasing the size of their portfolios, but the cost of purchase and the size of the deposit required are cited as the most significant barriers to making this a reality.ADNFCR-1645-ID-801702190-ADNFCR

Published on: March 11, 2014

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