There have been industry-wide fears and speculation that the number of property investors is dropping.
These rumours going around all point to the idea that the housing market bubble may burst soon. The drop in the number of property investors in the past few months is supposedly proof of this. The opposite is actually true as Total Landlord Insurance’s market analysis shows.
Long-Term Analysis Shows Increase In Landlords And Property Investors
It is a fact that the number of property investors and landlords dropped off as the 2nd quarter of 2022 closed. But the long-term analysis that the report presents actually shows growth in the private rented sector.
Total Landlord Insurance surveyed the current estimated number of landlords since 2019. This included property investors who get their income via their rental property investments.
The research shows that the number of property investors and landlords across Britain has increased---not dropped---to nearly 2.6 million. This is a 2.4% increase over the last three years.
10% Are Relying Fully On Rental Income; 90% Are Saving For Their Retirement Years
Of the nearly 2.6 million landlords surveyed, about 10% rely on rental property as their main source of income. Half of this percentage identifies as self-employed and uses the income for their living and daily expenses.
In terms of density, London has the highest increase in landlords at 8.4%. This is notable because this percentage is not only the highest for the market report. It is London's highest increase since 2016. The South East and the East of England round out the top three, with increases of 3.4% and 4%, respectively.
Conversely, the market report showed that the majority of property investors and landlords did not rely on rental income. Instead, they took that income and set it aside for their retirement years. These property investors are either employed or operate businesses. They relied on their employment or business for their living expenses and needs.
The Number of Property Investors Isn’t Dropping; Interest Is Even Picking Up
The market report also showed several property investors and landlords are open to adding property investments to their portfolios.
This is despite the tax increases and the rise in interest and mortgage rates. Not to mention changes to legislation, like the Renters Reform Bill. This bill currently undergoing formal evidence sessions in Parliament. (Click on this article to read more.)
A Total Landlord Insurance spokesperson says: “In recent years, the nation’s landlords have been served up an unsavoury cocktail with regard to restrictions to income tax relief, buy-to-let stamp duty increases and changes to capital gains tax.
“Despite this, the number of landlords has not only remained robust across Britain, but we’ve actually seen an increase which is proof, if it were ever needed, that property remains a very attractive investment.
What Property Do I Invest In? Consider Off-Plan And New Build Property Investments
Experienced property investors know that buying into off-plan and new build property investments is a great strategy. It can be used even with the current market conditions. With careful planning and execution, it can be used regardless of the issues surrounding the private rented sector.
For first-time property investors, off-plan and new build are opportunities they may be looking for. Off-plan and new build property investments have low buy-ins. This may offer property investors the potential for high capital growth and rental yields.
Book a chat or call our team today on 02079236100 to know why our property investment strategy focuses on off-plan and new build property investments. We can also help you plan and pick the strategy that is right for you and that can give you the confidence to invest with certainty in areas with good solid fundamentals.