22 Feb

Landlords turning to yields for retirement income

Landlords turning to yields for retirement income

Landlords in the UK are now increasingly turning towards the money that they bring in from their buy-to-let properties as they look for ways to supplement their income when they have retired.

A recent HSBC report stated that many Brits will have used up all their money in reserve within seven years of stopping work, leaving them with a mean of 12 years of hardship.

According to BM Solutions/BDRC Continental, this has led to 84 per cent of those with properties to rent out to tenants relying on the money they bring in, in terms of yield, to supplement them in their latter years.

Of this, some six-in-ten are also of the impression that demand will be sustained at a level that will mean they earn enough in retirement to fully pay for their lifestyle.

Phil Rickards, head of sales at BM Solutions, said: "The private rental sector remains an alternative source of long-term investment for landlords for later life and this does not look like it is set to change. While rental yields have dipped slightly, they still remain at the high levels we have seen over the past few years."ADNFCR-1222-ID-801545467-ADNFCR

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