Single property landlords struggling with finances
By Simon Thompson
Finances are tougher for landlord with a single buy to let or shared house than those with larger property portfolios, according to new research.
Bigger certainly seems better for investors with more than five rental properties - as 40% with portfolios of five to 10 homes and 68% with more than 11 properties make a profit as full time landlords.
The figures come from the latest quarterly landlord survey by market research firm BDRC Continental.
The findings for the second quarter of 2012 show the number of single let landlords in financial problems has doubled to 16% in just three months.
One in 10 blamed lengthy voids of up to 69 days and rent arrears for their plight.
In the first three months of 2012, the survey indicated rental arrears fell for the first time in a year, but the trend reversed in the second quarter.
Landlords are also concerned about declining tenant demand - with a perceived drop for the third consecutive quarter even though most landlords felt actual demand from tenants had changed little.
BDRC Continental Mark Long said: “It is a tough time to be a private landlord if you have only one property in your portfolio. Over the last quarter profitability has clearly taken a dive.
“Regardless of their size, there is no question the private rental sector relies on them, and whilst a third may aspire to increase their property portfolio, they will only be able to achieve this goal and add to Britain’s privately rented housing stock if they can make a profit from that one property.”