We seem to be in very interesting times for landlords. Some people give an impression of all round doom and gloom but actually recent findings released by leading specialist market research agency, BDRC show two very distinct camps.
The BDRC came about in 2006 and its function is to canvas the opinions and expectations of Britain’s landlords. They do this by surveying a control group of 500 landlords every quarter. In the last quarter of 2008 their survey uncovered a major split in the fortunes and attitudes of the two different types of landlords operating in Britain.
The report, for the first time, distinguishes between what it calls the amateur landlord market and the professional ones. It puts anyone with fewer than five properties in the former category. The report states that these landlords are struggling in the financial climate with seven percent saying they are making a loss at the moment.
In stark contrast the report indicates that professional landlords are thriving. All surveyed said they are making a profit and many are adding to their portfolio by taking advantage of the falling property prices and repossessions.
Mark Long, Client Services Director at BDRC, says “The credit crunch has polarised the private rental market. Whilst professional landlords are able to cover their costs and expand their portfolios, the amateur landlords, many of whom ‘fell’ into letting by accident, are really starting to feel the pinch.”
Interesting times indeed.
Cashflow is the number one issue for landlords at the moment. Please see my earlier blogs on how to improve your cashflow.
