Figures revealed by the National Landlords Association have revealed just how much private landlords have invested in the private rental sector. The cost of mortgage repayments made by private landlords over the last twelve months is a staggering £21.9 billion and just over 1 million landlords have some type of buy to let lending in place.
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Big Investment The NLA has discovered that landlords with four or less properties spent just over £10k on their mortgage repayments last year whereas landlords with more than ten properties in their portfolio spent just over £55k on mortgage repayments.
“These figures really hammer home just how much money private landlords put into providing much needed homes for the UK’s estimated nine million renters, especially if we consider that such a large proportion are single-property or smaller portfolio landlords,” says Carolyn Uphill, Chairman of the NLA.
“The majority of private individual investors are keeping a supply of well-maintained homes on the market when previous governments have failed to incentivise or stimulate more housing and social housing has been in long term decline. There’s no sign of either of these issues letting up anytime soon so is it any wonder that BTL lending is at an all-time high? It’s hard to imagine exactly where all this investment would come from if landlords weren’t financing housing to such an extent.”
Be Prepared However, although the private rental sector is booming right now and buy to let finance is easy to come by, the NLA is reminding landlords that interest rates are likely to rise in the future, which will affect their business, so they need to be prepared.