Diligent saving, extra work and family support were the main ways that would-be buy-to-let (BTL) landlords planned to get a foot on the property ladder, research from Market Financial Solutions found.
The study showed that one in three (33%) wanted to own a BTL property in the future, rising to 54% among those aged 18 to 34.
Of those looking to become landlords, 52% were saving money each month, while 44% were working extra hours to boost their income.
A third (33%) said they were living with friends or family to save on rent or mortgage payments, and 30% had either asked or would ask family for financial help to buy a property.
Among aspiring landlords who did not yet own a home, 24% said they would consider buying a rental property before purchasing a place to live in themselves.
Paresh Raja, CEO at Market Financial Solutions, said: “Millions of Britons still have ambitions to invest in property and become a landlord.
“But with the rise in property prices over the years, would-be BTL investors today may find it more challenging to build a portfolio than was the case 20 or 30 years ago, which is why it’s so interesting to see the different financial strategies they are deploying to turn their ambitions into a reality.
“As a specialist BTL lender, we know that first-time landlords can find it difficult to access mortgages.”
Raja added: “For instance, someone seeking a BTL mortgage to purchase an investment property before they own their own home (as our research shows can be the case) may raise questions for a lender as to whether the borrower will indeed let the property or move into it themselves.
“That’s just one example of the barriers first-time BTL buyers can face in the mortgage application process, which is why brokers play such an important role in connecting those individuals with lenders best placed to support.”
