The new pension freedoms that came into force last week, could trigger a huge interest in over 55s becoming buy-to-let landlords for the first time.
New research shows that for 70 per cent of younger landlords, their buy-to-let portfolio is their only pension fund.
The study*, conducted by PropertyLetByUs.com – a leading online letting agent, shows that just one in five landlords said their property portfolio forms part of their pension provision. A further third of landlords are building their portfolios so that their children can benefit from the investment in the future. (* Source: PropertyLetByUs research amongst 500 landlords, April 2015).
The research also reveals that over a third of landlords said their mortgages will be paid off by the time they retire and just 6% claim they will sell their properties on their retirement. What’s more, 28% of landlords plan to expand their property portfolios in 2015 and over a third of landlords use a letting agent to help manage their properties.
Jane Morris, Managing Director of Property Let By Us comments:
“With mortgage rates at an all-time low and rents rising across the UK, it is no surprise that more and more investors are entering the buy-to-let market. Our research shows that many landlords see their property portfolios as a long term investment and a major part of their pension planning.
“Potential new retiree landlords need to choose their property and location carefully. A recent report by estate agents, Chestertons shows that Birmingham has a 6.8% average gross rental yield, while Manchester has 6.4%, Sheffield has 6.3%, Leeds has 6% and Cambridge has 4.6%.
“Anybody considering becoming a landlord should speak to local estate agents to see what the rental demand is like locally and what monthly rental income they can expect. However, if retires have no experience of the property market, they may be better considering alternative investment options.”
For more information, visit www.propertyletbyus.com
Pension Freedoms recently come into force, could Trigger Huge Interest in over 55's becoming First Time Landlords. – http://t.co/Y3ja3mdukW
— LandlordZONE (@LandlordZONE) April 13, 2015