Nearly a quarter of all landlords are accidental

The findings from a National Landlords Association (NLA) survey, which asked landlords why they first entered the buy to let (BTL) market, show that:

    11% were by chance, e.g. through inheriting property
    5% acquired an extra property, e.g. when they met a spouse
    5% intended to sell but experienced difficulties
    3% had to relocate for work, either home or abroad

Central London was found to have the highest proportion of accidental landlords with 31% . This is closely followed by Wales on 29% and then the East of England and Yorkshire, both with 27%. The North West had the least with just 15% claiming to have got into the business unintentionally.

However, the research also shows that three in 10 landlords with a single property only breakeven or make a loss.

Carolyn Uphill, Chairman of the NLA, said: “The figures show that there are a significant number of people who find themselves as landlords without ever having really planned to enter the market. It may be surprising to find that so many single-property landlords struggle to make it work, but we often find that this is because so many simply don’t realise what they’re getting themselves into.

While a BTL property can provide a steady return, you’re in business to provide a home for someone else so you need to know your obligations and make sure that you have a plan to make a success of it all. All landlords can sign up to the NLA for free to see how we can help make a success of their business. We offer free best practice tenancy agreements and other sample forms and letters which they may need during the life cycle of a tenancy.

Alternatively, enlisting the help of a letting agent is an option if you prefer a more hands-off approach; just make sure they are a member of a reputable trade organisation such as UKALA.”