25 Jul

NLA voices retirement buy-to-let concerns

NLA voices retirement buy-to-let concerns

Some investors could be relying too heavily on buy-to-let properties to help them in their retirement, claims the National Landlords Association (NLA).

The landlord organisation has raised concerns that 77 per cent of landlords are reliant on their residential property investments to support them in retirement, especially if further tax changes are introduced.

Recent figures from the Office for National Statistics (ONS) estimate the average retired household spends a total of £21,770 per annum - a shortfall of more than £15,000 after taking the full basic state pension into account.

“As a consequence of government policy over recent decades almost two million people are reliant on their property to fund their later years,” said Richard Lambert, chief executive officer of the NLA.

“But the changing tax regime will substantially reduce the income they receive from these investments and so compromise the retirement plans of a significant number of hard working people," he pointed out.

“Some 27 per cent of UK landlords are already retired and 37 per cent are aged 55 or over, so there is a pressing need to tackle these issues without delay.”

The NLA is hoping the government will adjust their plans to change capital gains tax (CGT) liabilities for landlords.ADNFCR-1222-ID-801838184-ADNFCR

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