While no one is saying being a landlord in London is easy, or that a London landlord are guaranteed to enjoy success, it is fair to say that some people see that it provides an opportunity to generate income. After all, there is an elevated level of demand for rental accommodation in the capital and with rental fees rising, it is natural that people consider this to be an opportunity to make money. There are many challenges to face as a landlord but if you’re looking to become a London landlord, help is available and.
The basis for the latest discussion about people looking to become landlords can be traced back to a study undertaken by Sainsbury Bank. It has been found that 9% of respondents suggest they are looking to obtain a buy to let mortgage before the end of the year. While you would expect many of these people to not follow through with their initial interest, it is likely that some people will follow up with their intentions.
New London landlord could shape change in the rental market
This could see a surge in the number of rental properties across the country, which may change the rental market. With demand outstripping supply in the rental market of late, it is natural that fees have risen, which creates the incentive and opportunity for many new landlords.
Of the people who said they were looking to obtain a buy to let mortgage, 35% said that a change in their own personal circumstances and finance level has encouraged them to review the rental market. There was also a response from 29% of people who said they were looking to obtain a buy to let market thanks to the opportunity provided by the market.
Accidental landlords impact on the market
Another factor that is causing some people to think about obtaining a buy to let mortgage is the number of people who are becoming accidental landlords. These are people who have been provided with property through inheritance or through a relative not being able to stay in the property, and then being unable to sell the property.
While there is a prominent level of demand for property, not every vendor finds the current market circumstances suitable or attractive to sell. Therefore, letting the property may appear to be a more attractive solution to them, generating short-term income as opposed to costing them money.
The fact that many existing landlords look to leave the market will be concerning for some people, but there are reasons as to why these people are leaving. Existing landlords have experienced many changes in the rental market of late, forcing people who have had long-standing strategies and plans to manage their investment to change their practices. New landlords can make plans that take these changes into account, hopefully providing them with assistance in turning a profit and achieving success in the market.
If you are looking to become a landlord in London, help is available. I am experienced in the London property and rental market, and I am always happy to offer guidance and support. If you’re looking to achieve success in the present day rental market, reach out for assistance.
CEO, Kings Accommodation