A survey of nearly 5,000 landlords by Bradford & Bingley revealed that those most likely to invest in the buy-to-let market in 2007 are everyday people who are looking for capital growth and a means to supplement their pension pots. The majority successfully hold down a day job in addition to maintaining their rental properties. Only 10% of buy-to-let investors are self-employed as a full-time professional landlord.
Contrary to the misconception that landlords are in it for a quick buck, most are investing for the long-term, with half of all respondents (50%), confirming that they have been investing in property for over five years, to date. Only 7% have been investing for under a year.
The South East is the most popular area for buy-to-let investment, with 29% of landlords owning an investment property in the region. Brighton is revealed as the jewel in the South East's crown, enjoying the fastest rate of growth at present. Its popularity among buy-to-let investors is largely driven by its vibrancy, large student population and proximity to London. Over a fifth of landlords (23%) own buy-to-let properties in London, making it the second most popular part of the UK in which to invest.
Andy Wiggans, director of mortgages at Bradford & Bingley, said: "Despite recent reports of a slowdown in the buy-to-let sector, our biggest ever survey of those at the heart of the market shows it remains strong. Higher interest rates may have an effect on cash flow but they have no impact on long-term capital returns. Buy-to-let remains a popular market that attracts a wide spectrum of people from all walks of life looking for long-term capital growth or a means of supplementing their pension."
