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The Typical Landlord

The Typical Landlord

Category: Business

Updated: 31/10/2008
First Published: 23/08/2006

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Research from Paragon Mortgages and Mortgage Trust has revealed the make-up of a typical buy-to-let landlord in today's market.

The survey shows him or her to:

  • Have been involved in buy-to-let for ten years
  • Own an average portfolio of 10.6 properties (a quarter of them unencumbered) worth £1.69m
  • Have mortgage borrowing with 2.4 different lenders
  • Have an average loan to value of only 50%
  • Be reliant on property investment as the primary source of income in just over a quarter of cases
  • Receive rental income sufficient to cover mortgage costs by a ratio of 130%
  • Be on average aged 49
  • Prefer property over any other form of investment
  • Be of socio-economic group B
  • Fund deposits for property from savings
  • Have an average loan-to-value ratio of 50%

John Heron, Director of Mortgage at Paragon Mortgages, says: "Landlords invest in property in order to generate a combination of capital appreciation and rental income, and certainly share none of the characteristics of the short term speculator who may seek to purchase properties and sell them quickly, making a quick 'turn' in a rising market. The landlord takes a professional approach, although property investment is most likely not his sole or even his main business activity."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.