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Oct 13

Number of First-Time Landlords on the Rise

There’s been a significant influx in the total of first-time landlords thanks to the boost in the property market, with this number expected to increase.

A recent survey discovered that 27 per cent of circumstances involved first-time landlords compared to 22 per cent in the second quarter – the highest it’s been since the economic downturn.

Additionally, the poll noted that tenant demand remains extremely high. A staggering 91 per cent of landlords and 43 per cent of intermediaries stated landlord demand for buy-to-let finance in the third quarter as being strong or very strong; enjoying a steady rise from 22 per cent in the same period as 2012.

Approximately six out of ten intermediaries reported that the availability of buy-to-let finance had experienced a massive improvement over the past three months.

With the demand for new homes in the Private Rented Sector (PRS) growing at a steady rate, more and more individuals are taking the plunge and becoming landlords – hoping to reap the many benefits that comes with letting out a property such as its long-term capital growth.

The increase in first-time landlords could not have come at a better time, with the more experienced landlords responsible for larger portfolios faced by the curtailment of limited equity.

In order for this growth to continue, especially when concerning the demands of renters as well as the PRS, it is crucial for finance to be made more readily available. 

However, there needs to be a better support framework for first-time landlords – such as understanding key factors such as identifying target locations and demographics.

The majority of new landlords find the idea of buying low value housing in regions requiring regeneration a hugely tempting option, but often neglect to consider the importance of rental demand. Instances where the property remains vacant for long periods of time can prove extremely troublesome, with the landlord often funding the mortgage payments as well as other related costs.

This trend has not gone unnoticed by Total Landlord Insurance, where its experts have recognised a massive spike in first-time landlords enquiring about the difference landlord insurance policies available. For help in determining the relevant coverage, call their advisors on 0800 63 43 880 – and start saving today.

About the author

Eddie Hooker Photograph Eddie Hooker has been involved in the insurance industry since 1985.  He worked with many large insurers such as Legal & General and AXA Insurance prior to setting up his own insurance business, Hamilton Fraser, in 1996.  Hamilton Fraser now employs over 130 staff out of their North London office, dealing with various insurance products for the buy-to-let property market such landlord insurance, rent guarantee insurance, emergency cover and tenancy deposit protection. 

Eddie and Hamilton Fraser Insurance first started to provide landlord insurance as early as 1996 when they became involved with the Small Landlord Association, which later became the National Landlords Association. 

By working closely with the industry’s leading companies Eddie and his team have built up a detailed understanding of the landlord market ensuring that the customer experience is founded on knowledge and support.  This has been highlighted in a recent customer survey that found that 95% of Hamilton Fraser customers were either satisfied or more than satisfied with the service provided by the company.

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