Landlords earn double the average salary

Gross annual rental income averaged almost £60,000, over twice the typical yearly pay of £27,174.

A landlord’s average property portfolio is worth around £1.2m.

Phil Rickards, head of BM Solutions, said: “It’s easy to see why people are attracted to the buy-to-let market; it offers a tangible investment which can provide the long term returns that some other assets won’t.

“For those people considering the opportunities that this market presents it is however important to understand the financial and legal commitments being a landlord brings and to ensure that you undertake the right level of research and due diligence to increase your chances of success.”

With property portfolios generally comprising of eight and nine properties, two-thirds of landlords rely on buy-to-let funding through mortgages when making a purchase.

Landlord confidence is on the rise, as six in 10 (61%) are confident on the prospects for buy-to-let, up from 54% over the same period last year, while optimism regarding capital gains rose from 27% to 49%.

Over the past quarter the average UK rental yields increased by 0.2% to 6.2%, remaining relatively unchanged from 6.1% over the last 12 months.

Yields inflated most in the East Midlands and Wales, achieving a return of 6.7%, while Yorkshire and Humber saw the lowest returns of 5.7%.

Eight in 10 (78%) landlords view their property as their pension, while 64% consider themselves as ‘professional’.

One in three however do not have an exit strategy, financial or business plan or a formalised growth strategy in place.