Landlords in London are more likely to have purchased with a mortgage than their counterparts across the UK, research by the Council of Mortgage Lenders found.
A survey by the CML found that about 15 per cent of London landlords purchased at least one rental property with cash.
This figure rises to 23 per cent outside the capital.
Almost half of landlords in London had a buy-to-let mortgage on at least one rental property, compared to 35 per cent in the rest of the UK.
A note published by the CML said: “We found that, in many ways, landlords with property in London were very similar to landlords in the rest of the UK.
“But the results of this survey suggest that London landlords tend to make different decisions about financing, managing and expanding their properties.
“With a relatively small sample, it is difficult to say with certainty what is driving this.”
The use of letting agents is more common in London, but London landlords are less likely to opt for full management through the agent.
Meanwhile, of those landlords who plan to change the size of their portfolio, those in London were more likely to plan to buy more properties (13 per cent) than sell properties (9 per cent).
Compared to the rest of the UK, landlords with properties in London have higher disposable incomes, are more likely to be full-time workers, and typically become landlords at a younger age.
The average age of first-time landlords in London is 42, compared to 47 outside the capital.
In London, landlords are about 25 per cent less likely to start out as an “accidental” landlord - that is, a landlord who has inherited rental property or who is letting a dwelling because it cannot be sold, rather than through choice.
They are also about 50 per cent more likely to become a landlord after moving in with a partner who also owns their own home.
damian.fantato@ft.com
