Ever wondered why landlords stick with buy-to-let despite increasing tax and regulatory hurdles?
Paragon Bank’s latest survey of 500 landlords reveals some fascinating insights into their motivations and long-term plans.
Key Findings:
Long-term Rental Demand: A whopping 60% of landlords are driven by the ongoing demand for rental properties, seeing it as a solid reason to expand their portfolios.
Retirement Income: Over half (54%) view property investment as a means to supplement their retirement income, indicating a focus on long-term financial security.
Capital Appreciation: Nearly half (47%) believe in the long-term growth of house prices, making it a significant factor in their investment decisions.
Preference for Property: More than a third (34%) prefer property as an investment asset over other options, appreciating its tangible nature and wealth-building potential.
Want to learn more about AI's impact on the world in general and property in particular? Join us on our next Webinar! Click here to register
Louisa Sedgwick, Paragon Bank’s Managing Director of Mortgages, highlights the optimistic outlook: “The rental market is set for continued growth, driven by projected population increases of around 10% over the next decade. This favourable market outlook is underpinning the investment decisions of aspiring landlords.”
The survey also delves into what initially attracts landlords to the rental market. Friends and family are a significant influence, with 43% of respondents citing them as a primary motivation. Interestingly, 39% of landlords started renting out their first property by accident, often after purchasing a second home or inheriting property.
When it comes to choosing property over other investments, landlords emphasise its tangible nature (67%), wealth-building potential (54%), and the ability to pass it on as an inheritance (53%).
Sedgwick concludes: “The rental market is attracting a growing number of landlords who are inspired by their friends and family or who have discovered the benefits of property ownership through other circumstances. These aspiring landlords are committed to providing rental homes for the future and require a supportive regulatory and fiscal environment to continue their investment activities.”
So, despite the challenges, the buy-to-let market remains attractive to many, driven by long-term demand, retirement planning, and the inherent benefits of property investment. Here’s to a future of thriving rental markets and savvy landlords!
Want to learn more about AI's impact on the world in general and property in particular? Join us on our next Webinar! Click here to register
Made with TRUST_AI - see the Charter: https://www.modelprop.co.uk/trust-ai
Comentarios