The competitive nature of buy-to-let, with a large number of lenders offering a large number of flexible schemes, means that almost anyone can now borrow to invest in property.
This means that most buy-to-let landlords are just ordinary people who see property as a safe and secure investment, often with a view to investing as an alternative to their pensions.
According to the most recent ARLA survey:
- In 2004 25% of buy-to-let investors were between 25 and 35 years old but now, today, this age group makes up just 6% of investors.
- 17% are between 35 and 45 years old
- 32% are between 46 and 55
- 30.5% are between 56 and 65
- 13.6% are 65+
Although buy to let has really taken off over the last decade, the majority of buy-to-let investors can be considered to be “experienced” landlords, and have not jumped onto a “recent band-wagon”:
- 4.2% of investors have owned their property for less than 1 year
- 5 percent have owned property for 1 year
- 7.3% have owned property for between 2 and 3 years
- 11.4% have owned their property for between 4 and 5 years
- 31.1% have owned their property for between 6 and 10 years
- 27.1% have owned their property for between 11 and 20 years
- 10.4% have owned their property for between 21 and 40 years
- 3.45 have owned their property for more than 40 years.
Buy-to-let is obviously working for them because:
- 50.8% intend to buy another property over the next twelve months
However, a typical buy-to-let investor does not have a large portfolio in terms of number of properties owned:
- 24% have 1 property
- 17.2% have 2 properties
- 28.4% have between 3 and 5 properties
- 14.8% have between 6 and 10 properties
- 8.3% have between 11 and 20 properties
- 4.9% have between 21 and 50 properties
- 2.4% have 50+ properties