Of the 287 landlords questioned by the lender, 16 per cent decided to extend their portfolio after their first rental property was a success, while 10 per cent bought further properties as opportunities, such as inheritance, allowed.
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Of the properties in the portfolios flats accounted for 39 per cent, while terraced houses made up 34 per cent. The report also indicated that detached houses were the least popular option, making up just 4 per cent of the portfolio total.
The survey revealed that two-thirds of landlords managed their entire portfolio within 20 miles of their own home, with properties housing a mix of tenants. Couples accounted for 31 per cent, followed by singletons at 25 per cent. Couples and children represented 20 per cent and single parent families 16 per cent, according to the study.
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Iain Williamson, head of key accounts at BM Solutions admitted the findings proved the strength and diversity of the market. He commented: “By looking at the mix of tenants and properties, we can see that a wide range of people, right from single households through to families, make the decision to rent. The future of the BTL market is a big talking point at the moment. When you look at the diversity of the property and people sustaining the market, it’s good news for landlords, which, in turn, is great news for mortgage intermediaries.”
Alec Murray, group director of mortgages for Thinc Group, said professional landlords understood the importance of portfolio diversification and that this did not just extend to different types of property.
He explained: “Some investors go for flats and others houses, because different people have different experiences. Professional landlords don’t want to expose themselves to one type of property and want to diversify their portfolio.
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“It’s not only different types of property, but how many investors are purchasing property outside their main domicile and are looking for the next BTL hotspot.”
