Study: Number of private landlords set to increase
According to market research organization Mintel, the number of people in the UK who own a second home in order to rent it out could double in the next three years. A new report by the researchers claims that 3 percent of homeowners are considering purchasing a rental property by 2010. If all those who are considering such a move actually buy a rental property, the number of landlords in the UK would double to around 2 million. This would continue an increase in the number of private landlords that began around 10 years ago, when laws changed to make sure that landlords could be sure to get back properties they had let out.
A spokesman for Mintel said that many homeowners see buying a second, rental, property as a slightly different way of saving for retirement. They look at being a landlord as a good investment. In the survey of 2,000 adults, 68 percent of those who own second homes believe that property is a better way to invest than entering a pension scheme. Further, only 10 percent of those polled say that rising interest rates would make them change their mind about the wisdom of such an investment.