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arly two thirds of respondents became investors within the last 3 years, with 30% of respondents becoming investors within the last year and 33% starting to invest in property between 1999 and 2001. Only 8% of landlords have been investing more than 15 years.
Most investment properties are owned within 20 miles of their own house, meaning that the market is fairly localised. However 10% claimed that they owned property over 200 miles away.
In terms of the number of properties owned by an individual landlord, its clear that there are many new investors entering the market for the first time, with 32% owning just the one property, 23% own 2 properties, 12% own 3 properties, 9% own four properties, 4% own six properties and 10% own 5 or more properties. The average portfolio size is £897,000, with portfolio sizes ranging from £30,000 to £15m. The average loan to value of these properties was 54%.
Conclusion of data : With the buy-to-let market continuing at a dizzying pace, the report confirms the growing number of first time investors into the market, with many testing the water for the first time. There have been a huge number of first time investors (30%) within the last 12 months, which will have also fuelled the high price increases experienced over the last year or so as properties are snapped up by potential "buy-to-let" investors. It appears that the investment in property will not slow down just yet, as with many of the investors I speak to from the South continually looking to invest in the North of England, rather than London where yields are poorer. It is probably fair to say that there is still a lack of confidence in the stock market with more money going into property than in to stock and shares, however, the report also shows that in order to fund the deposit for the investment properties, most of the funds come from either the re-mortgage of existing property (41%), or the use of their own savings (48%). Only 4.7% was from the sale of stocks and shares, and this may be to do with the share prices being so low that investors are not willing to release their money just yet. It will be interesting to see what happens to the ownership of stocks and shares as the market starts to rise, and whether that money will be release to go into the property investment market.
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