6 Oct

Landlords not taking advantage of pension freedoms

Landlords not taking advantage of pension freedoms

Many landlords are not set to take advantage of pension freedoms to expand their property portfolios, claims new research.

A study by the National Landlords Association (NLA) concluded that just five per cent of current landlords are set to withdraw a lump sum to invest in property.

A total of 11 per cent of landlords involved in the research explained they do not have a large enough pension to be able to withdraw funds, while seven per cent said they already had plans for their pension pot.

Nineteen per cent remain undecided how or whether they will take advantage of the changes in pension rules that allow them to access some money now.

NLA also questioned landlords on how they plan to enjoy their retirement, with three per cent planning to sell their complete property portfolios when they give up work, while 19 per cent they had not yet considered their options and 25 per cent confirmed they may sell some of their rental properties.

"There has been a lot of talk around pensions being used to invest in buy to let since the announcement on pension freedoms was made last year. While the changes may be attractive to those considering a move into buy to let, it’s clearly not that popular an option for landlords," said Carolyn Uphill, chairman of the NLA.

"Those currently in the market already have an asset to use if they want to expand, their property, and therefore, depending on circumstance, will have the means to put a lump sum towards other investments or plans; that is if they want to withdraw it at all," she explained.

 

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