Mature portfolio key to success for landlords
The volume of buy to let properties being purchased in the UK has dropped slightly in recent months.
This is down to the availability of finance for landlords looking to get into the market, however, those with a more mature portfolio of rental properties have an advantage when it comes to further investment in homes.
Alan Ward, chairman of the Residential Landlords’ Association, said: “Figures show that on average, 25 per cent is still required from the borrower which means that [buy-to-let properties] require more mature investors.”
He added that the maturity of a landlord’s portfolio will mean it is able to provide equity to fund further development.
While rental streams and property management are crucial for landlords, Mr Ward noted that a capital gain can be made through adding value to a home by refurbishing or redeveloping it.
David Lawrenson, private rented sector expert at LettingFocus.com, recently urged landlords to know which type of tenant they want in their rental properties.
Discount Landlord offers fast and competitive buy to let insurance quotes. See what you could save.